roaring 20s great depression new deal...the roaring 20’s, the great depression, & the new deal...
TRANSCRIPT
1/30/13
1
The Roaring 20’s, The Great Depression, & The New Deal Presented by Mr. Anderson, M.Ed., J.D.
The Roaring 20’s • The Election of 1920
• wins by a landslide (60% of the popular vote vs. 34% for James Cox)
• Advocated social stability and big business (people trusted him)
• weary of sacrifice at home; healing was needed for normalcy
The “Return to Normalcy” • Laissez-faire government
• “The business of the American people is… business” – Calvin Coolidge)
The “Return to Normalcy” • Isolationism - The foreign policy that Republican presidents in
the 1920’s will follow • stay out of foreign affairs • avoid political and economic alliances
• America becomes isolationist for several reasons: • Because of the Treaty of Versailles • Because of the League of Nations, which called for disarmament
• to support big business
Political Scandal Under Harding • Harding’s Secretary of the Interior Albert B. Fall sold oil
drilling rights in Elk Hills, CA and Teapot Dome, Wyoming for $300,000
• Edward Doheny - owned oil fields in CA
• Frank Seaver - worked for Doheny
• Harry Sinclair - owned oil fields in WY
The Growth of the American Economy in the 1920’s • Recession after WWI
• economy slowed down • returning soldiers needed work (supply and demand) • COL doubled
• labor strikes for better working conditions and higher wages • Boston police strike
• puts Coolidge on the scene • led to riots, his successful handling will make him popular
The “Farm Problem” • No Roaring 20’s for the farmers
• after wartime demand ended, wheat and cotton prices plummeted
• During the good times, they had bought new machinery with loans
• incurred massive debt
Henry Ford and the Model T • Revolutionized the auto industry with the assembly line
(economies of scale) • Externalities -
• gas stations • motels • roads • part stores • tire companies
Installment Buying • To this point everything was done in cash! • Jumpstarts the Consumer economy and consumer culture we
have today! • with credit, demand grew • pushed up prices, but supply kept up • led to the construction of power plants • higher standard of living, more leisure time and… • chain stores
Those Who Did Not Benefit • Farmers
• Supply & demand during WWI & after WWI • Farmers should have cut supply after WWI
• Unskilled Labor & Migrant Workers • Remained poor • Hit the hardest of all
Warm-up #1: Review Notes • Briefly describe president Warren Harding’s stance on:
• foreign policy • treatment towards big business
• Briefly define installment buying.
• Explain the economic effect of the advent of installment buying.
The “Red Scare” • The “Red Scare” was in response to the Russian revolution
of 1917. • In desiring “normalcy,” American citizens sought to destroy
anybody or anything perceived to be “un-American.”
Nativism • The idea of returning America to its original state
• Return of the KKK • targeted Jews, African Americans, Immigrants
Nativism • Anti-immigration laws passed in the early 1920’s put quotas
or limits on the numbers of people that could come from certain countries (national origins act of 1924)
• no Asians • very few Pols, Italians, and Russians
These people represented competition in the labor market
Terrorist Plots • Anarchists target big names in society:
• Palmer (politician) • Rockefeller (business entrepreneur) • Oliver Wendell Holmes (Supreme Court Chief Justice)
• This is why Americans search for a return to the “America of old”
The Palmer Raids • As the Red Scare heightened, the government looked for
those who represented a “clear and present” danger to US national security
• Led by A. Mitchell Palmer, head of the Justice Department (attorney general)
• justice department is part of what branch?
A. Mitchell Palmer • created the FBI
• J. Edgar Hoover • Conducted two raids in 1919 and 1920
• arrests 6000 immigrants, aliens, labor leaders • tried to deport them all • 550 deported, 4000 released
Response to the Palmer Raids • Applause at first
• public outcry after the facts come out: • bogus search warrants (4th) • evidence falsified, right against self-incrimination (5th)
• practiced law after losing his nomination bid in the 1920 election
Social Issues of the 1920’s • Flappers & Vamps!
• wished to break with the past (mothers) • shorter hair, shorter skirts, more make-up • would go out alone, smoke/drink • clubs (Charleston) • The 19th Amendment (1920)
The Rise of American Culture • Mass Media: Billboards, radio, movies
• promoted the creation of a national culture
Radio • Affordable
• NBC(1925) & CBS (1929)
• George Burns, Groucho Marx, Bing Crosby, Jack Benny • FDR’s “fireside chats”
Sports • Football, Baseball & Boxing
• Lou Gehrig/Babe Ruth
Movies • The Jazz Singer
• Mickey Mouse
• For the first time, sound was put to the movements on the screen
Hero Worship • People longed for old-fashioned virtues
• people got fed up with immoral behavior • Charles Lindbergh, Amelia Earhart, Babe Ruth, Jack
Dempsey
Warm-up #2: Review Notes • Explain what the rise of films, radio broadcasting, and the
news media helped bring about in the United States at the beginning of the 1920’s?
The Scopes Monkey Trial • John Scopes – science teacher in TN • taught evolution in Biology class, which was banned because
it contradicted the teachings on the Bible • Legal Issue:
• the right to teach evolution in public schools
The Scopes Monkey Trial • Prosecution: State of Tennessee (William Jennings Bryan)
• Called themselves fundamentalists • believed in a literal interpretation of the Bible
• Defense: John Scopes (Clarence Darrow of the ACLU) • believed in Evolution and the theories of Charles Darwin • taught them purposefully
Tennessee v. John Scopes (1925)
The Scopes Monkey Trial • Scopes was found guilty of teaching evolution
• Fundamentalists lost serious momentum as a result of this decision
• Conviction was later overturned (did little to change interpretations)
Prohibition (18th Amendment) • Passed in 1919, this Amendment would lead to the rise of
organized crime • politicians in the 1920’s had to disclose if they were in favor
or a “wet” or “dry” society • Bootleggers, speakeasies popped up everywhere • In 1933, the 21st Amendment officially ended the prohibition
experiment
Prohibition • Enforced by the Volstead Act • Vetoed by Wilson (D) and overridden by each house of
Congress (R) by a 2/3 vote
Murder – Cal. P.C. §187
The Jazz Age • A truly American invention
• Louis Armstrong • Duke Ellington
• Started in the deep south and migrated north to Harlem during the Great Migration • blues • gospel
The Harlem Renaissance • The awakening of African American literary and musical
talent • James Weldon Johnson and Zora Neale Hurston, as well as Langston hughes embodied the Harlem Renaissance
Warm-up #3: Review Notes • List Amendments 18-27!!!!
The Election of 1928 • Al Smith (D):
• From NY where he was a four-time governor • pro-immigrant • Catholic
The Election of 1928 • Herbert Hoover (R):
• Sec. of Commerce under Harding and Coolidge • self-made millionaire • good times would get better • wins easily
Causes of the Stock Market Crash • It seemed that everybody was investing in the stock market • people bought stock on margin (get rich quick attitude) • made for a lot of rich Americans on paper.
Stock Market Principles • Stock- ownership of a company • point is to invest for the long-term • buy low and sell high • many factors that determine worth of stock
Stock Market Ascent and descent • The upward climb of the stock market benefitted the rich • created a “bubble” • in late October 1929, the Dow Jones Industrial Average
began to drop • people started to sell their stock
Bank Failures • After the crash, thousands of banks will have to close, not
being able to pay depositors back • No safety net (today federal insurance) • People lost confidence in their banks
The President’s Response • As the economy collapsed, people began to blame President
Hoover • “Hoovervilles” will spring up across the country, one effect of
wage cuts and unemployment
The President’s Response • As the economy continued to decline, Hoover believed the
gov’t. should let businesses voluntarily control themselves • no stimulus packages here! • Republican idea
The President’s Response • As a result of this inaction, the view of economics and the
government’s role in economics would change forever • the gov’t. is much more pro-active today in business affairs
Causes of the Great Depression • Overexpansion of Agriculture -
• WWI and increased demand • as war ended, farmers kept supply high • as demand decreased, farmers increased supply
Causes of the Great Depression • Overexpansion of industry -
• Industry produced more goods than most consumers could afford or want
• S>D as a result, reduced prices, reduced wages, stalled the economy
Causes of the Great Depression • Technological unemployment -
• Companies began to replace people with machines • work could be done quicker, more efficiently, and at a lower cost to the producer.
Causes of the Great Depression • Overexpansion of credit -
• credit was too easy in the 1920’s • people overextended themselves • as the economy turned south, loans couldn’t be repaid • FED tightened credit
• wrong move
Causes of the Great Depression • “Overspeculation” –
• bought stock w/ borrowed money & then pledged those stocks as collateral to buy more stocks
• Bought stock in companies with poor financial health
• Bought stock on optimism instead of real value
The Government’s Response • Voluntary steps by government and business
• Hoover advocated “confidence” • called big business leaders to white house
• promised to keep wages up • spent more on public buildings roads
The Government’s Response • Agricultural Marketing Act (June 1929)
• Federal Farm Board • 1st gov’t. attempt to stabilize crop prices • proved to be a failure • lost over $150,000,000.00
The Reconstruction Finance Corporation • Reflected theory of trickle down economics • Helped economy as a whole through loans • Government extended credit to banks who would then extend
credit to individuals in society
Warm-up #4: Review Notes • Who did American’s blame for the decline of the American
economy into the depression? • what were the shantytowns many American moved into called?
• “Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.” Charles Dickens David Copperfield
The Election of 1932 • Herbert Hoover (R) • FDR (D)
• People liked his optimism and his willingness to experiment with the economy
• Major Issues facing voters: The Depression and Prohibition
The “New Deal” • FDR won easily in 1932 by promising Americans a “New
Deal” • He was a capitalist but laissez-faire government was dead at this point
• Election marked a change in how Americans viewed the role and responsibilities of the national government
• “New Deal” was the most massive program of social legislation (laws) ever!
• Creation of several major federal agencies
The “Third American Revolution” • The Bonus Army Marchers – 20,000 jobless WWI Vets &
families set up camp in Washington D.C. • Wanted immediate payment of pension bonus (to be pd. in
‘45) • Pres. Hoover through Gen. Douglas MacArthur, used force to
drive them out of Washington D.C.
The “Third American Revolution” • The “Demagogues”
• FDR’s critics • They manipulated people with half-truths and scare tactics • Called for socialism and a change of government • Huey Long, Father Charles Coughlin, Dr. Francis Townsend
The “Third American Revolution” • The Progressives were another group of people who
criticized the government for not doing enough to fix the problems of society • FDR was not doing enough to redistribute the wealth
New Deal Programs • The “Bank Holiday”
• FDR closed all banks in the United States for a period of 4 days the day after he took the office of the Presidency.
• He did this to inspect the financial health of all banks • Eased the “run on the banks” • Confidence back into the banking system
• More $ in accounts than taking out • Established FDIC
New Deal Programs • In his first 100 days, FDR, with the help of his “brain trust,”
sent social program after social program to Congress for passage into law.
• These programs were referred to as FDR’s alphabet soup
social programs • because of all the acronyms!
Alphabet Soup
New Deal Programs
The First New Deal, 1933 - 1945
New Deal Programs • The Three R’s: Relief, Recovery, Reform
• aimed at combating the Great Depression • Relief: AAA, CCC, WPA, TVA, NRA, PWA • Recovery: NLRB, RFC • Reform: FDIC, FHA, SEC, SSA
• Which of these programs are still around today? (Can you name the six?)
Alphabet Soup
The Second New Deal The Second Hundred Days • After his first 100 days in office, stronger focus on Social
Reforms • Citizens & politicians began to complain that FDR was
“socializing” the United States too much and starting to stray from the values of hard work & initiative the country was built on. • New programs failed to bring about significant economic improvement
WPA
The Second New Deal • Court Packing (1937) - FDR’s BIGGEST COMPLAINT
• As many of his programs came under fire, they started being challenged @ Sup. Ct.
• When the Sup. Ct. refused to uphold the Constitutionality of some of his programs, he threatened the 9 member Supreme Court w/ adding more justices
• He wanted to ‘pack’ the U.S. Sup. Ct. w/ justices favoring his programs
NLRB & The Wagner Act • NLRB called The Wagner Act (1935)
• collective bargaining & closed shops • Led to a rise in unions and numbers of strikes • Outlawed spying on union activities & blacklisting (practice in which employers agreed not to hire union leaders)
• Led to sit-down strikes, which were so popular they were outlawed by the Sup. Ct.
Social Security Act (1935) • Social Security system
• Provide financial security (regular payments) to those who could not support themselves • Old-age pensions & survivors’ benefits
• early as 62 or full at 65 • Unemployment Insurance
• > 8 employees • Aid for dependent children, the blind, & the disabled
The Election of 1936 • FDR (D) vs. Alf Landon (R) KS Gov’nr • 523 electoral votes to 8 electoral votes
• every state except ME & VT • wins by a landslide • This victory showed support for FDR and all of his “New
Deal” programs
The Recession of 1937 • All of these social programs cost lots and lots of money
(Nothing comes free)
• led to a rise in national debt (spending more than it was bringing in)
• Our debt today (the debt clock) • Reduced consumer spending (ills of a consumer society)
Social Consequences of The New Deal • Minority groups lost jobs to whites • Women who worked were criticized • The “Depression Generation” and credit buying • Role of the First Lady in government • Legacy of the New Deal-restored hope • Role of Movies in society • Any effects of this legislation today?
2011 Federal Budget Expenditures
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1/30/13
2
The Roaring 20’s, The Great Depression, & The New Deal Presented by Mr. Anderson, M.Ed., J.D.
The Roaring 20’s • The Election of 1920
• wins by a landslide (60% of the popular vote vs. 34% for James Cox)
• Advocated social stability and big business (people trusted him)
• weary of sacrifice at home; healing was needed for normalcy
The “Return to Normalcy” • Laissez-faire government
• “The business of the American people is… business” – Calvin Coolidge)
The “Return to Normalcy” • Isolationism - The foreign policy that Republican presidents in
the 1920’s will follow • stay out of foreign affairs • avoid political and economic alliances
• America becomes isolationist for several reasons: • Because of the Treaty of Versailles • Because of the League of Nations, which called for disarmament
• to support big business
Political Scandal Under Harding • Harding’s Secretary of the Interior Albert B. Fall sold oil
drilling rights in Elk Hills, CA and Teapot Dome, Wyoming for $300,000
• Edward Doheny - owned oil fields in CA
• Frank Seaver - worked for Doheny
• Harry Sinclair - owned oil fields in WY
The Growth of the American Economy in the 1920’s • Recession after WWI
• economy slowed down • returning soldiers needed work (supply and demand) • COL doubled
• labor strikes for better working conditions and higher wages • Boston police strike
• puts Coolidge on the scene • led to riots, his successful handling will make him popular
The “Farm Problem” • No Roaring 20’s for the farmers
• after wartime demand ended, wheat and cotton prices plummeted
• During the good times, they had bought new machinery with loans
• incurred massive debt
Henry Ford and the Model T • Revolutionized the auto industry with the assembly line
(economies of scale) • Externalities -
• gas stations • motels • roads • part stores • tire companies
Installment Buying • To this point everything was done in cash! • Jumpstarts the Consumer economy and consumer culture we
have today! • with credit, demand grew • pushed up prices, but supply kept up • led to the construction of power plants • higher standard of living, more leisure time and… • chain stores
Those Who Did Not Benefit • Farmers
• Supply & demand during WWI & after WWI • Farmers should have cut supply after WWI
• Unskilled Labor & Migrant Workers • Remained poor • Hit the hardest of all
Warm-up #1: Review Notes • Briefly describe president Warren Harding’s stance on:
• foreign policy • treatment towards big business
• Briefly define installment buying.
• Explain the economic effect of the advent of installment buying.
The “Red Scare” • The “Red Scare” was in response to the Russian revolution
of 1917. • In desiring “normalcy,” American citizens sought to destroy
anybody or anything perceived to be “un-American.”
Nativism • The idea of returning America to its original state
• Return of the KKK • targeted Jews, African Americans, Immigrants
Nativism • Anti-immigration laws passed in the early 1920’s put quotas
or limits on the numbers of people that could come from certain countries (national origins act of 1924)
• no Asians • very few Pols, Italians, and Russians
These people represented competition in the labor market
Terrorist Plots • Anarchists target big names in society:
• Palmer (politician) • Rockefeller (business entrepreneur) • Oliver Wendell Holmes (Supreme Court Chief Justice)
• This is why Americans search for a return to the “America of old”
The Palmer Raids • As the Red Scare heightened, the government looked for
those who represented a “clear and present” danger to US national security
• Led by A. Mitchell Palmer, head of the Justice Department (attorney general)
• justice department is part of what branch?
A. Mitchell Palmer • created the FBI
• J. Edgar Hoover • Conducted two raids in 1919 and 1920
• arrests 6000 immigrants, aliens, labor leaders • tried to deport them all • 550 deported, 4000 released
Response to the Palmer Raids • Applause at first
• public outcry after the facts come out: • bogus search warrants (4th) • evidence falsified, right against self-incrimination (5th)
• practiced law after losing his nomination bid in the 1920 election
Social Issues of the 1920’s • Flappers & Vamps!
• wished to break with the past (mothers) • shorter hair, shorter skirts, more make-up • would go out alone, smoke/drink • clubs (Charleston) • The 19th Amendment (1920)
The Rise of American Culture • Mass Media: Billboards, radio, movies
• promoted the creation of a national culture
Radio • Affordable
• NBC(1925) & CBS (1929)
• George Burns, Groucho Marx, Bing Crosby, Jack Benny • FDR’s “fireside chats”
Sports • Football, Baseball & Boxing
• Lou Gehrig/Babe Ruth
Movies • The Jazz Singer
• Mickey Mouse
• For the first time, sound was put to the movements on the screen
Hero Worship • People longed for old-fashioned virtues
• people got fed up with immoral behavior • Charles Lindbergh, Amelia Earhart, Babe Ruth, Jack
Dempsey
Warm-up #2: Review Notes • Explain what the rise of films, radio broadcasting, and the
news media helped bring about in the United States at the beginning of the 1920’s?
The Scopes Monkey Trial • John Scopes – science teacher in TN • taught evolution in Biology class, which was banned because
it contradicted the teachings on the Bible • Legal Issue:
• the right to teach evolution in public schools
The Scopes Monkey Trial • Prosecution: State of Tennessee (William Jennings Bryan)
• Called themselves fundamentalists • believed in a literal interpretation of the Bible
• Defense: John Scopes (Clarence Darrow of the ACLU) • believed in Evolution and the theories of Charles Darwin • taught them purposefully
Tennessee v. John Scopes (1925)
The Scopes Monkey Trial • Scopes was found guilty of teaching evolution
• Fundamentalists lost serious momentum as a result of this decision
• Conviction was later overturned (did little to change interpretations)
Prohibition (18th Amendment) • Passed in 1919, this Amendment would lead to the rise of
organized crime • politicians in the 1920’s had to disclose if they were in favor
or a “wet” or “dry” society • Bootleggers, speakeasies popped up everywhere • In 1933, the 21st Amendment officially ended the prohibition
experiment
Prohibition • Enforced by the Volstead Act • Vetoed by Wilson (D) and overridden by each house of
Congress (R) by a 2/3 vote
Murder – Cal. P.C. §187
The Jazz Age • A truly American invention
• Louis Armstrong • Duke Ellington
• Started in the deep south and migrated north to Harlem during the Great Migration • blues • gospel
The Harlem Renaissance • The awakening of African American literary and musical
talent • James Weldon Johnson and Zora Neale Hurston, as well as Langston hughes embodied the Harlem Renaissance
Warm-up #3: Review Notes • List Amendments 18-27!!!!
The Election of 1928 • Al Smith (D):
• From NY where he was a four-time governor • pro-immigrant • Catholic
The Election of 1928 • Herbert Hoover (R):
• Sec. of Commerce under Harding and Coolidge • self-made millionaire • good times would get better • wins easily
Causes of the Stock Market Crash • It seemed that everybody was investing in the stock market • people bought stock on margin (get rich quick attitude) • made for a lot of rich Americans on paper.
Stock Market Principles • Stock- ownership of a company • point is to invest for the long-term • buy low and sell high • many factors that determine worth of stock
Stock Market Ascent and descent • The upward climb of the stock market benefitted the rich • created a “bubble” • in late October 1929, the Dow Jones Industrial Average
began to drop • people started to sell their stock
Bank Failures • After the crash, thousands of banks will have to close, not
being able to pay depositors back • No safety net (today federal insurance) • People lost confidence in their banks
The President’s Response • As the economy collapsed, people began to blame President
Hoover • “Hoovervilles” will spring up across the country, one effect of
wage cuts and unemployment
The President’s Response • As the economy continued to decline, Hoover believed the
gov’t. should let businesses voluntarily control themselves • no stimulus packages here! • Republican idea
The President’s Response • As a result of this inaction, the view of economics and the
government’s role in economics would change forever • the gov’t. is much more pro-active today in business affairs
Causes of the Great Depression • Overexpansion of Agriculture -
• WWI and increased demand • as war ended, farmers kept supply high • as demand decreased, farmers increased supply
Causes of the Great Depression • Overexpansion of industry -
• Industry produced more goods than most consumers could afford or want
• S>D as a result, reduced prices, reduced wages, stalled the economy
Causes of the Great Depression • Technological unemployment -
• Companies began to replace people with machines • work could be done quicker, more efficiently, and at a lower cost to the producer.
Causes of the Great Depression • Overexpansion of credit -
• credit was too easy in the 1920’s • people overextended themselves • as the economy turned south, loans couldn’t be repaid • FED tightened credit
• wrong move
Causes of the Great Depression • “Overspeculation” –
• bought stock w/ borrowed money & then pledged those stocks as collateral to buy more stocks
• Bought stock in companies with poor financial health
• Bought stock on optimism instead of real value
The Government’s Response • Voluntary steps by government and business
• Hoover advocated “confidence” • called big business leaders to white house
• promised to keep wages up • spent more on public buildings roads
The Government’s Response • Agricultural Marketing Act (June 1929)
• Federal Farm Board • 1st gov’t. attempt to stabilize crop prices • proved to be a failure • lost over $150,000,000.00
The Reconstruction Finance Corporation • Reflected theory of trickle down economics • Helped economy as a whole through loans • Government extended credit to banks who would then extend
credit to individuals in society
Warm-up #4: Review Notes • Who did American’s blame for the decline of the American
economy into the depression? • what were the shantytowns many American moved into called?
• “Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.” Charles Dickens David Copperfield
The Election of 1932 • Herbert Hoover (R) • FDR (D)
• People liked his optimism and his willingness to experiment with the economy
• Major Issues facing voters: The Depression and Prohibition
The “New Deal” • FDR won easily in 1932 by promising Americans a “New
Deal” • He was a capitalist but laissez-faire government was dead at this point
• Election marked a change in how Americans viewed the role and responsibilities of the national government
• “New Deal” was the most massive program of social legislation (laws) ever!
• Creation of several major federal agencies
The “Third American Revolution” • The Bonus Army Marchers – 20,000 jobless WWI Vets &
families set up camp in Washington D.C. • Wanted immediate payment of pension bonus (to be pd. in
‘45) • Pres. Hoover through Gen. Douglas MacArthur, used force to
drive them out of Washington D.C.
The “Third American Revolution” • The “Demagogues”
• FDR’s critics • They manipulated people with half-truths and scare tactics • Called for socialism and a change of government • Huey Long, Father Charles Coughlin, Dr. Francis Townsend
The “Third American Revolution” • The Progressives were another group of people who
criticized the government for not doing enough to fix the problems of society • FDR was not doing enough to redistribute the wealth
New Deal Programs • The “Bank Holiday”
• FDR closed all banks in the United States for a period of 4 days the day after he took the office of the Presidency.
• He did this to inspect the financial health of all banks • Eased the “run on the banks” • Confidence back into the banking system
• More $ in accounts than taking out • Established FDIC
New Deal Programs • In his first 100 days, FDR, with the help of his “brain trust,”
sent social program after social program to Congress for passage into law.
• These programs were referred to as FDR’s alphabet soup
social programs • because of all the acronyms!
Alphabet Soup
New Deal Programs
The First New Deal, 1933 - 1945
New Deal Programs • The Three R’s: Relief, Recovery, Reform
• aimed at combating the Great Depression • Relief: AAA, CCC, WPA, TVA, NRA, PWA • Recovery: NLRB, RFC • Reform: FDIC, FHA, SEC, SSA
• Which of these programs are still around today? (Can you name the six?)
Alphabet Soup
The Second New Deal The Second Hundred Days • After his first 100 days in office, stronger focus on Social
Reforms • Citizens & politicians began to complain that FDR was
“socializing” the United States too much and starting to stray from the values of hard work & initiative the country was built on. • New programs failed to bring about significant economic improvement
WPA
The Second New Deal • Court Packing (1937) - FDR’s BIGGEST COMPLAINT
• As many of his programs came under fire, they started being challenged @ Sup. Ct.
• When the Sup. Ct. refused to uphold the Constitutionality of some of his programs, he threatened the 9 member Supreme Court w/ adding more justices
• He wanted to ‘pack’ the U.S. Sup. Ct. w/ justices favoring his programs
NLRB & The Wagner Act • NLRB called The Wagner Act (1935)
• collective bargaining & closed shops • Led to a rise in unions and numbers of strikes • Outlawed spying on union activities & blacklisting (practice in which employers agreed not to hire union leaders)
• Led to sit-down strikes, which were so popular they were outlawed by the Sup. Ct.
Social Security Act (1935) • Social Security system
• Provide financial security (regular payments) to those who could not support themselves • Old-age pensions & survivors’ benefits
• early as 62 or full at 65 • Unemployment Insurance
• > 8 employees • Aid for dependent children, the blind, & the disabled
The Election of 1936 • FDR (D) vs. Alf Landon (R) KS Gov’nr • 523 electoral votes to 8 electoral votes
• every state except ME & VT • wins by a landslide • This victory showed support for FDR and all of his “New
Deal” programs
The Recession of 1937 • All of these social programs cost lots and lots of money
(Nothing comes free)
• led to a rise in national debt (spending more than it was bringing in)
• Our debt today (the debt clock) • Reduced consumer spending (ills of a consumer society)
Social Consequences of The New Deal • Minority groups lost jobs to whites • Women who worked were criticized • The “Depression Generation” and credit buying • Role of the First Lady in government • Legacy of the New Deal-restored hope • Role of Movies in society • Any effects of this legislation today?
2011 Federal Budget Expenditures
1
2
3
4
1
2
5
1
2
6
1
2
7
8
9
1
2
10
1
2
11
1
2
12
13
14
15
16
17
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27
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57
58
59
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61
62
63
64
65
66
67
68
69
70
71
72
73
74
1/30/13
3
The Roaring 20’s, The Great Depression, & The New Deal Presented by Mr. Anderson, M.Ed., J.D.
The Roaring 20’s • The Election of 1920
• wins by a landslide (60% of the popular vote vs. 34% for James Cox)
• Advocated social stability and big business (people trusted him)
• weary of sacrifice at home; healing was needed for normalcy
The “Return to Normalcy” • Laissez-faire government
• “The business of the American people is… business” – Calvin Coolidge)
The “Return to Normalcy” • Isolationism - The foreign policy that Republican presidents in
the 1920’s will follow • stay out of foreign affairs • avoid political and economic alliances
• America becomes isolationist for several reasons: • Because of the Treaty of Versailles • Because of the League of Nations, which called for disarmament
• to support big business
Political Scandal Under Harding • Harding’s Secretary of the Interior Albert B. Fall sold oil
drilling rights in Elk Hills, CA and Teapot Dome, Wyoming for $300,000
• Edward Doheny - owned oil fields in CA
• Frank Seaver - worked for Doheny
• Harry Sinclair - owned oil fields in WY
The Growth of the American Economy in the 1920’s • Recession after WWI
• economy slowed down • returning soldiers needed work (supply and demand) • COL doubled
• labor strikes for better working conditions and higher wages • Boston police strike
• puts Coolidge on the scene • led to riots, his successful handling will make him popular
The “Farm Problem” • No Roaring 20’s for the farmers
• after wartime demand ended, wheat and cotton prices plummeted
• During the good times, they had bought new machinery with loans
• incurred massive debt
Henry Ford and the Model T • Revolutionized the auto industry with the assembly line
(economies of scale) • Externalities -
• gas stations • motels • roads • part stores • tire companies
Installment Buying • To this point everything was done in cash! • Jumpstarts the Consumer economy and consumer culture we
have today! • with credit, demand grew • pushed up prices, but supply kept up • led to the construction of power plants • higher standard of living, more leisure time and… • chain stores
Those Who Did Not Benefit • Farmers
• Supply & demand during WWI & after WWI • Farmers should have cut supply after WWI
• Unskilled Labor & Migrant Workers • Remained poor • Hit the hardest of all
Warm-up #1: Review Notes • Briefly describe president Warren Harding’s stance on:
• foreign policy • treatment towards big business
• Briefly define installment buying.
• Explain the economic effect of the advent of installment buying.
The “Red Scare” • The “Red Scare” was in response to the Russian revolution
of 1917. • In desiring “normalcy,” American citizens sought to destroy
anybody or anything perceived to be “un-American.”
Nativism • The idea of returning America to its original state
• Return of the KKK • targeted Jews, African Americans, Immigrants
Nativism • Anti-immigration laws passed in the early 1920’s put quotas
or limits on the numbers of people that could come from certain countries (national origins act of 1924)
• no Asians • very few Pols, Italians, and Russians
These people represented competition in the labor market
Terrorist Plots • Anarchists target big names in society:
• Palmer (politician) • Rockefeller (business entrepreneur) • Oliver Wendell Holmes (Supreme Court Chief Justice)
• This is why Americans search for a return to the “America of old”
The Palmer Raids • As the Red Scare heightened, the government looked for
those who represented a “clear and present” danger to US national security
• Led by A. Mitchell Palmer, head of the Justice Department (attorney general)
• justice department is part of what branch?
A. Mitchell Palmer • created the FBI
• J. Edgar Hoover • Conducted two raids in 1919 and 1920
• arrests 6000 immigrants, aliens, labor leaders • tried to deport them all • 550 deported, 4000 released
Response to the Palmer Raids • Applause at first
• public outcry after the facts come out: • bogus search warrants (4th) • evidence falsified, right against self-incrimination (5th)
• practiced law after losing his nomination bid in the 1920 election
Social Issues of the 1920’s • Flappers & Vamps!
• wished to break with the past (mothers) • shorter hair, shorter skirts, more make-up • would go out alone, smoke/drink • clubs (Charleston) • The 19th Amendment (1920)
The Rise of American Culture • Mass Media: Billboards, radio, movies
• promoted the creation of a national culture
Radio • Affordable
• NBC(1925) & CBS (1929)
• George Burns, Groucho Marx, Bing Crosby, Jack Benny • FDR’s “fireside chats”
Sports • Football, Baseball & Boxing
• Lou Gehrig/Babe Ruth
Movies • The Jazz Singer
• Mickey Mouse
• For the first time, sound was put to the movements on the screen
Hero Worship • People longed for old-fashioned virtues
• people got fed up with immoral behavior • Charles Lindbergh, Amelia Earhart, Babe Ruth, Jack
Dempsey
Warm-up #2: Review Notes • Explain what the rise of films, radio broadcasting, and the
news media helped bring about in the United States at the beginning of the 1920’s?
The Scopes Monkey Trial • John Scopes – science teacher in TN • taught evolution in Biology class, which was banned because
it contradicted the teachings on the Bible • Legal Issue:
• the right to teach evolution in public schools
The Scopes Monkey Trial • Prosecution: State of Tennessee (William Jennings Bryan)
• Called themselves fundamentalists • believed in a literal interpretation of the Bible
• Defense: John Scopes (Clarence Darrow of the ACLU) • believed in Evolution and the theories of Charles Darwin • taught them purposefully
Tennessee v. John Scopes (1925)
The Scopes Monkey Trial • Scopes was found guilty of teaching evolution
• Fundamentalists lost serious momentum as a result of this decision
• Conviction was later overturned (did little to change interpretations)
Prohibition (18th Amendment) • Passed in 1919, this Amendment would lead to the rise of
organized crime • politicians in the 1920’s had to disclose if they were in favor
or a “wet” or “dry” society • Bootleggers, speakeasies popped up everywhere • In 1933, the 21st Amendment officially ended the prohibition
experiment
Prohibition • Enforced by the Volstead Act • Vetoed by Wilson (D) and overridden by each house of
Congress (R) by a 2/3 vote
Murder – Cal. P.C. §187
The Jazz Age • A truly American invention
• Louis Armstrong • Duke Ellington
• Started in the deep south and migrated north to Harlem during the Great Migration • blues • gospel
The Harlem Renaissance • The awakening of African American literary and musical
talent • James Weldon Johnson and Zora Neale Hurston, as well as Langston hughes embodied the Harlem Renaissance
Warm-up #3: Review Notes • List Amendments 18-27!!!!
The Election of 1928 • Al Smith (D):
• From NY where he was a four-time governor • pro-immigrant • Catholic
The Election of 1928 • Herbert Hoover (R):
• Sec. of Commerce under Harding and Coolidge • self-made millionaire • good times would get better • wins easily
Causes of the Stock Market Crash • It seemed that everybody was investing in the stock market • people bought stock on margin (get rich quick attitude) • made for a lot of rich Americans on paper.
Stock Market Principles • Stock- ownership of a company • point is to invest for the long-term • buy low and sell high • many factors that determine worth of stock
Stock Market Ascent and descent • The upward climb of the stock market benefitted the rich • created a “bubble” • in late October 1929, the Dow Jones Industrial Average
began to drop • people started to sell their stock
Bank Failures • After the crash, thousands of banks will have to close, not
being able to pay depositors back • No safety net (today federal insurance) • People lost confidence in their banks
The President’s Response • As the economy collapsed, people began to blame President
Hoover • “Hoovervilles” will spring up across the country, one effect of
wage cuts and unemployment
The President’s Response • As the economy continued to decline, Hoover believed the
gov’t. should let businesses voluntarily control themselves • no stimulus packages here! • Republican idea
The President’s Response • As a result of this inaction, the view of economics and the
government’s role in economics would change forever • the gov’t. is much more pro-active today in business affairs
Causes of the Great Depression • Overexpansion of Agriculture -
• WWI and increased demand • as war ended, farmers kept supply high • as demand decreased, farmers increased supply
Causes of the Great Depression • Overexpansion of industry -
• Industry produced more goods than most consumers could afford or want
• S>D as a result, reduced prices, reduced wages, stalled the economy
Causes of the Great Depression • Technological unemployment -
• Companies began to replace people with machines • work could be done quicker, more efficiently, and at a lower cost to the producer.
Causes of the Great Depression • Overexpansion of credit -
• credit was too easy in the 1920’s • people overextended themselves • as the economy turned south, loans couldn’t be repaid • FED tightened credit
• wrong move
Causes of the Great Depression • “Overspeculation” –
• bought stock w/ borrowed money & then pledged those stocks as collateral to buy more stocks
• Bought stock in companies with poor financial health
• Bought stock on optimism instead of real value
The Government’s Response • Voluntary steps by government and business
• Hoover advocated “confidence” • called big business leaders to white house
• promised to keep wages up • spent more on public buildings roads
The Government’s Response • Agricultural Marketing Act (June 1929)
• Federal Farm Board • 1st gov’t. attempt to stabilize crop prices • proved to be a failure • lost over $150,000,000.00
The Reconstruction Finance Corporation • Reflected theory of trickle down economics • Helped economy as a whole through loans • Government extended credit to banks who would then extend
credit to individuals in society
Warm-up #4: Review Notes • Who did American’s blame for the decline of the American
economy into the depression? • what were the shantytowns many American moved into called?
• “Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.” Charles Dickens David Copperfield
The Election of 1932 • Herbert Hoover (R) • FDR (D)
• People liked his optimism and his willingness to experiment with the economy
• Major Issues facing voters: The Depression and Prohibition
The “New Deal” • FDR won easily in 1932 by promising Americans a “New
Deal” • He was a capitalist but laissez-faire government was dead at this point
• Election marked a change in how Americans viewed the role and responsibilities of the national government
• “New Deal” was the most massive program of social legislation (laws) ever!
• Creation of several major federal agencies
The “Third American Revolution” • The Bonus Army Marchers – 20,000 jobless WWI Vets &
families set up camp in Washington D.C. • Wanted immediate payment of pension bonus (to be pd. in
‘45) • Pres. Hoover through Gen. Douglas MacArthur, used force to
drive them out of Washington D.C.
The “Third American Revolution” • The “Demagogues”
• FDR’s critics • They manipulated people with half-truths and scare tactics • Called for socialism and a change of government • Huey Long, Father Charles Coughlin, Dr. Francis Townsend
The “Third American Revolution” • The Progressives were another group of people who
criticized the government for not doing enough to fix the problems of society • FDR was not doing enough to redistribute the wealth
New Deal Programs • The “Bank Holiday”
• FDR closed all banks in the United States for a period of 4 days the day after he took the office of the Presidency.
• He did this to inspect the financial health of all banks • Eased the “run on the banks” • Confidence back into the banking system
• More $ in accounts than taking out • Established FDIC
New Deal Programs • In his first 100 days, FDR, with the help of his “brain trust,”
sent social program after social program to Congress for passage into law.
• These programs were referred to as FDR’s alphabet soup
social programs • because of all the acronyms!
Alphabet Soup
New Deal Programs
The First New Deal, 1933 - 1945
New Deal Programs • The Three R’s: Relief, Recovery, Reform
• aimed at combating the Great Depression • Relief: AAA, CCC, WPA, TVA, NRA, PWA • Recovery: NLRB, RFC • Reform: FDIC, FHA, SEC, SSA
• Which of these programs are still around today? (Can you name the six?)
Alphabet Soup
The Second New Deal The Second Hundred Days • After his first 100 days in office, stronger focus on Social
Reforms • Citizens & politicians began to complain that FDR was
“socializing” the United States too much and starting to stray from the values of hard work & initiative the country was built on. • New programs failed to bring about significant economic improvement
WPA
The Second New Deal • Court Packing (1937) - FDR’s BIGGEST COMPLAINT
• As many of his programs came under fire, they started being challenged @ Sup. Ct.
• When the Sup. Ct. refused to uphold the Constitutionality of some of his programs, he threatened the 9 member Supreme Court w/ adding more justices
• He wanted to ‘pack’ the U.S. Sup. Ct. w/ justices favoring his programs
NLRB & The Wagner Act • NLRB called The Wagner Act (1935)
• collective bargaining & closed shops • Led to a rise in unions and numbers of strikes • Outlawed spying on union activities & blacklisting (practice in which employers agreed not to hire union leaders)
• Led to sit-down strikes, which were so popular they were outlawed by the Sup. Ct.
Social Security Act (1935) • Social Security system
• Provide financial security (regular payments) to those who could not support themselves • Old-age pensions & survivors’ benefits
• early as 62 or full at 65 • Unemployment Insurance
• > 8 employees • Aid for dependent children, the blind, & the disabled
The Election of 1936 • FDR (D) vs. Alf Landon (R) KS Gov’nr • 523 electoral votes to 8 electoral votes
• every state except ME & VT • wins by a landslide • This victory showed support for FDR and all of his “New
Deal” programs
The Recession of 1937 • All of these social programs cost lots and lots of money
(Nothing comes free)
• led to a rise in national debt (spending more than it was bringing in)
• Our debt today (the debt clock) • Reduced consumer spending (ills of a consumer society)
Social Consequences of The New Deal • Minority groups lost jobs to whites • Women who worked were criticized • The “Depression Generation” and credit buying • Role of the First Lady in government • Legacy of the New Deal-restored hope • Role of Movies in society • Any effects of this legislation today?
2011 Federal Budget Expenditures
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1/30/13
4
The Roaring 20’s, The Great Depression, & The New Deal Presented by Mr. Anderson, M.Ed., J.D.
The Roaring 20’s • The Election of 1920
• wins by a landslide (60% of the popular vote vs. 34% for James Cox)
• Advocated social stability and big business (people trusted him)
• weary of sacrifice at home; healing was needed for normalcy
The “Return to Normalcy” • Laissez-faire government
• “The business of the American people is… business” – Calvin Coolidge)
The “Return to Normalcy” • Isolationism - The foreign policy that Republican presidents in
the 1920’s will follow • stay out of foreign affairs • avoid political and economic alliances
• America becomes isolationist for several reasons: • Because of the Treaty of Versailles • Because of the League of Nations, which called for disarmament
• to support big business
Political Scandal Under Harding • Harding’s Secretary of the Interior Albert B. Fall sold oil
drilling rights in Elk Hills, CA and Teapot Dome, Wyoming for $300,000
• Edward Doheny - owned oil fields in CA
• Frank Seaver - worked for Doheny
• Harry Sinclair - owned oil fields in WY
The Growth of the American Economy in the 1920’s • Recession after WWI
• economy slowed down • returning soldiers needed work (supply and demand) • COL doubled
• labor strikes for better working conditions and higher wages • Boston police strike
• puts Coolidge on the scene • led to riots, his successful handling will make him popular
The “Farm Problem” • No Roaring 20’s for the farmers
• after wartime demand ended, wheat and cotton prices plummeted
• During the good times, they had bought new machinery with loans
• incurred massive debt
Henry Ford and the Model T • Revolutionized the auto industry with the assembly line
(economies of scale) • Externalities -
• gas stations • motels • roads • part stores • tire companies
Installment Buying • To this point everything was done in cash! • Jumpstarts the Consumer economy and consumer culture we
have today! • with credit, demand grew • pushed up prices, but supply kept up • led to the construction of power plants • higher standard of living, more leisure time and… • chain stores
Those Who Did Not Benefit • Farmers
• Supply & demand during WWI & after WWI • Farmers should have cut supply after WWI
• Unskilled Labor & Migrant Workers • Remained poor • Hit the hardest of all
Warm-up #1: Review Notes • Briefly describe president Warren Harding’s stance on:
• foreign policy • treatment towards big business
• Briefly define installment buying.
• Explain the economic effect of the advent of installment buying.
The “Red Scare” • The “Red Scare” was in response to the Russian revolution
of 1917. • In desiring “normalcy,” American citizens sought to destroy
anybody or anything perceived to be “un-American.”
Nativism • The idea of returning America to its original state
• Return of the KKK • targeted Jews, African Americans, Immigrants
Nativism • Anti-immigration laws passed in the early 1920’s put quotas
or limits on the numbers of people that could come from certain countries (national origins act of 1924)
• no Asians • very few Pols, Italians, and Russians
These people represented competition in the labor market
Terrorist Plots • Anarchists target big names in society:
• Palmer (politician) • Rockefeller (business entrepreneur) • Oliver Wendell Holmes (Supreme Court Chief Justice)
• This is why Americans search for a return to the “America of old”
The Palmer Raids • As the Red Scare heightened, the government looked for
those who represented a “clear and present” danger to US national security
• Led by A. Mitchell Palmer, head of the Justice Department (attorney general)
• justice department is part of what branch?
A. Mitchell Palmer • created the FBI
• J. Edgar Hoover • Conducted two raids in 1919 and 1920
• arrests 6000 immigrants, aliens, labor leaders • tried to deport them all • 550 deported, 4000 released
Response to the Palmer Raids • Applause at first
• public outcry after the facts come out: • bogus search warrants (4th) • evidence falsified, right against self-incrimination (5th)
• practiced law after losing his nomination bid in the 1920 election
Social Issues of the 1920’s • Flappers & Vamps!
• wished to break with the past (mothers) • shorter hair, shorter skirts, more make-up • would go out alone, smoke/drink • clubs (Charleston) • The 19th Amendment (1920)
The Rise of American Culture • Mass Media: Billboards, radio, movies
• promoted the creation of a national culture
Radio • Affordable
• NBC(1925) & CBS (1929)
• George Burns, Groucho Marx, Bing Crosby, Jack Benny • FDR’s “fireside chats”
Sports • Football, Baseball & Boxing
• Lou Gehrig/Babe Ruth
Movies • The Jazz Singer
• Mickey Mouse
• For the first time, sound was put to the movements on the screen
Hero Worship • People longed for old-fashioned virtues
• people got fed up with immoral behavior • Charles Lindbergh, Amelia Earhart, Babe Ruth, Jack
Dempsey
Warm-up #2: Review Notes • Explain what the rise of films, radio broadcasting, and the
news media helped bring about in the United States at the beginning of the 1920’s?
The Scopes Monkey Trial • John Scopes – science teacher in TN • taught evolution in Biology class, which was banned because
it contradicted the teachings on the Bible • Legal Issue:
• the right to teach evolution in public schools
The Scopes Monkey Trial • Prosecution: State of Tennessee (William Jennings Bryan)
• Called themselves fundamentalists • believed in a literal interpretation of the Bible
• Defense: John Scopes (Clarence Darrow of the ACLU) • believed in Evolution and the theories of Charles Darwin • taught them purposefully
Tennessee v. John Scopes (1925)
The Scopes Monkey Trial • Scopes was found guilty of teaching evolution
• Fundamentalists lost serious momentum as a result of this decision
• Conviction was later overturned (did little to change interpretations)
Prohibition (18th Amendment) • Passed in 1919, this Amendment would lead to the rise of
organized crime • politicians in the 1920’s had to disclose if they were in favor
or a “wet” or “dry” society • Bootleggers, speakeasies popped up everywhere • In 1933, the 21st Amendment officially ended the prohibition
experiment
Prohibition • Enforced by the Volstead Act • Vetoed by Wilson (D) and overridden by each house of
Congress (R) by a 2/3 vote
Murder – Cal. P.C. §187
The Jazz Age • A truly American invention
• Louis Armstrong • Duke Ellington
• Started in the deep south and migrated north to Harlem during the Great Migration • blues • gospel
The Harlem Renaissance • The awakening of African American literary and musical
talent • James Weldon Johnson and Zora Neale Hurston, as well as Langston hughes embodied the Harlem Renaissance
Warm-up #3: Review Notes • List Amendments 18-27!!!!
The Election of 1928 • Al Smith (D):
• From NY where he was a four-time governor • pro-immigrant • Catholic
The Election of 1928 • Herbert Hoover (R):
• Sec. of Commerce under Harding and Coolidge • self-made millionaire • good times would get better • wins easily
Causes of the Stock Market Crash • It seemed that everybody was investing in the stock market • people bought stock on margin (get rich quick attitude) • made for a lot of rich Americans on paper.
Stock Market Principles • Stock- ownership of a company • point is to invest for the long-term • buy low and sell high • many factors that determine worth of stock
Stock Market Ascent and descent • The upward climb of the stock market benefitted the rich • created a “bubble” • in late October 1929, the Dow Jones Industrial Average
began to drop • people started to sell their stock
Bank Failures • After the crash, thousands of banks will have to close, not
being able to pay depositors back • No safety net (today federal insurance) • People lost confidence in their banks
The President’s Response • As the economy collapsed, people began to blame President
Hoover • “Hoovervilles” will spring up across the country, one effect of
wage cuts and unemployment
The President’s Response • As the economy continued to decline, Hoover believed the
gov’t. should let businesses voluntarily control themselves • no stimulus packages here! • Republican idea
The President’s Response • As a result of this inaction, the view of economics and the
government’s role in economics would change forever • the gov’t. is much more pro-active today in business affairs
Causes of the Great Depression • Overexpansion of Agriculture -
• WWI and increased demand • as war ended, farmers kept supply high • as demand decreased, farmers increased supply
Causes of the Great Depression • Overexpansion of industry -
• Industry produced more goods than most consumers could afford or want
• S>D as a result, reduced prices, reduced wages, stalled the economy
Causes of the Great Depression • Technological unemployment -
• Companies began to replace people with machines • work could be done quicker, more efficiently, and at a lower cost to the producer.
Causes of the Great Depression • Overexpansion of credit -
• credit was too easy in the 1920’s • people overextended themselves • as the economy turned south, loans couldn’t be repaid • FED tightened credit
• wrong move
Causes of the Great Depression • “Overspeculation” –
• bought stock w/ borrowed money & then pledged those stocks as collateral to buy more stocks
• Bought stock in companies with poor financial health
• Bought stock on optimism instead of real value
The Government’s Response • Voluntary steps by government and business
• Hoover advocated “confidence” • called big business leaders to white house
• promised to keep wages up • spent more on public buildings roads
The Government’s Response • Agricultural Marketing Act (June 1929)
• Federal Farm Board • 1st gov’t. attempt to stabilize crop prices • proved to be a failure • lost over $150,000,000.00
The Reconstruction Finance Corporation • Reflected theory of trickle down economics • Helped economy as a whole through loans • Government extended credit to banks who would then extend
credit to individuals in society
Warm-up #4: Review Notes • Who did American’s blame for the decline of the American
economy into the depression? • what were the shantytowns many American moved into called?
• “Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.” Charles Dickens David Copperfield
The Election of 1932 • Herbert Hoover (R) • FDR (D)
• People liked his optimism and his willingness to experiment with the economy
• Major Issues facing voters: The Depression and Prohibition
The “New Deal” • FDR won easily in 1932 by promising Americans a “New
Deal” • He was a capitalist but laissez-faire government was dead at this point
• Election marked a change in how Americans viewed the role and responsibilities of the national government
• “New Deal” was the most massive program of social legislation (laws) ever!
• Creation of several major federal agencies
The “Third American Revolution” • The Bonus Army Marchers – 20,000 jobless WWI Vets &
families set up camp in Washington D.C. • Wanted immediate payment of pension bonus (to be pd. in
‘45) • Pres. Hoover through Gen. Douglas MacArthur, used force to
drive them out of Washington D.C.
The “Third American Revolution” • The “Demagogues”
• FDR’s critics • They manipulated people with half-truths and scare tactics • Called for socialism and a change of government • Huey Long, Father Charles Coughlin, Dr. Francis Townsend
The “Third American Revolution” • The Progressives were another group of people who
criticized the government for not doing enough to fix the problems of society • FDR was not doing enough to redistribute the wealth
New Deal Programs • The “Bank Holiday”
• FDR closed all banks in the United States for a period of 4 days the day after he took the office of the Presidency.
• He did this to inspect the financial health of all banks • Eased the “run on the banks” • Confidence back into the banking system
• More $ in accounts than taking out • Established FDIC
New Deal Programs • In his first 100 days, FDR, with the help of his “brain trust,”
sent social program after social program to Congress for passage into law.
• These programs were referred to as FDR’s alphabet soup
social programs • because of all the acronyms!
Alphabet Soup
New Deal Programs
The First New Deal, 1933 - 1945
New Deal Programs • The Three R’s: Relief, Recovery, Reform
• aimed at combating the Great Depression • Relief: AAA, CCC, WPA, TVA, NRA, PWA • Recovery: NLRB, RFC • Reform: FDIC, FHA, SEC, SSA
• Which of these programs are still around today? (Can you name the six?)
Alphabet Soup
The Second New Deal The Second Hundred Days • After his first 100 days in office, stronger focus on Social
Reforms • Citizens & politicians began to complain that FDR was
“socializing” the United States too much and starting to stray from the values of hard work & initiative the country was built on. • New programs failed to bring about significant economic improvement
WPA
The Second New Deal • Court Packing (1937) - FDR’s BIGGEST COMPLAINT
• As many of his programs came under fire, they started being challenged @ Sup. Ct.
• When the Sup. Ct. refused to uphold the Constitutionality of some of his programs, he threatened the 9 member Supreme Court w/ adding more justices
• He wanted to ‘pack’ the U.S. Sup. Ct. w/ justices favoring his programs
NLRB & The Wagner Act • NLRB called The Wagner Act (1935)
• collective bargaining & closed shops • Led to a rise in unions and numbers of strikes • Outlawed spying on union activities & blacklisting (practice in which employers agreed not to hire union leaders)
• Led to sit-down strikes, which were so popular they were outlawed by the Sup. Ct.
Social Security Act (1935) • Social Security system
• Provide financial security (regular payments) to those who could not support themselves • Old-age pensions & survivors’ benefits
• early as 62 or full at 65 • Unemployment Insurance
• > 8 employees • Aid for dependent children, the blind, & the disabled
The Election of 1936 • FDR (D) vs. Alf Landon (R) KS Gov’nr • 523 electoral votes to 8 electoral votes
• every state except ME & VT • wins by a landslide • This victory showed support for FDR and all of his “New
Deal” programs
The Recession of 1937 • All of these social programs cost lots and lots of money
(Nothing comes free)
• led to a rise in national debt (spending more than it was bringing in)
• Our debt today (the debt clock) • Reduced consumer spending (ills of a consumer society)
Social Consequences of The New Deal • Minority groups lost jobs to whites • Women who worked were criticized • The “Depression Generation” and credit buying • Role of the First Lady in government • Legacy of the New Deal-restored hope • Role of Movies in society • Any effects of this legislation today?
2011 Federal Budget Expenditures
1
2
3
4
1
2
5
1
2
6
1
2
7
8
9
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10
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68
69
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71
72
73
74
1/30/13
5
The Roaring 20’s, The Great Depression, & The New Deal Presented by Mr. Anderson, M.Ed., J.D.
The Roaring 20’s • The Election of 1920
• wins by a landslide (60% of the popular vote vs. 34% for James Cox)
• Advocated social stability and big business (people trusted him)
• weary of sacrifice at home; healing was needed for normalcy
The “Return to Normalcy” • Laissez-faire government
• “The business of the American people is… business” – Calvin Coolidge)
The “Return to Normalcy” • Isolationism - The foreign policy that Republican presidents in
the 1920’s will follow • stay out of foreign affairs • avoid political and economic alliances
• America becomes isolationist for several reasons: • Because of the Treaty of Versailles • Because of the League of Nations, which called for disarmament
• to support big business
Political Scandal Under Harding • Harding’s Secretary of the Interior Albert B. Fall sold oil
drilling rights in Elk Hills, CA and Teapot Dome, Wyoming for $300,000
• Edward Doheny - owned oil fields in CA
• Frank Seaver - worked for Doheny
• Harry Sinclair - owned oil fields in WY
The Growth of the American Economy in the 1920’s • Recession after WWI
• economy slowed down • returning soldiers needed work (supply and demand) • COL doubled
• labor strikes for better working conditions and higher wages • Boston police strike
• puts Coolidge on the scene • led to riots, his successful handling will make him popular
The “Farm Problem” • No Roaring 20’s for the farmers
• after wartime demand ended, wheat and cotton prices plummeted
• During the good times, they had bought new machinery with loans
• incurred massive debt
Henry Ford and the Model T • Revolutionized the auto industry with the assembly line
(economies of scale) • Externalities -
• gas stations • motels • roads • part stores • tire companies
Installment Buying • To this point everything was done in cash! • Jumpstarts the Consumer economy and consumer culture we
have today! • with credit, demand grew • pushed up prices, but supply kept up • led to the construction of power plants • higher standard of living, more leisure time and… • chain stores
Those Who Did Not Benefit • Farmers
• Supply & demand during WWI & after WWI • Farmers should have cut supply after WWI
• Unskilled Labor & Migrant Workers • Remained poor • Hit the hardest of all
Warm-up #1: Review Notes • Briefly describe president Warren Harding’s stance on:
• foreign policy • treatment towards big business
• Briefly define installment buying.
• Explain the economic effect of the advent of installment buying.
The “Red Scare” • The “Red Scare” was in response to the Russian revolution
of 1917. • In desiring “normalcy,” American citizens sought to destroy
anybody or anything perceived to be “un-American.”
Nativism • The idea of returning America to its original state
• Return of the KKK • targeted Jews, African Americans, Immigrants
Nativism • Anti-immigration laws passed in the early 1920’s put quotas
or limits on the numbers of people that could come from certain countries (national origins act of 1924)
• no Asians • very few Pols, Italians, and Russians
These people represented competition in the labor market
Terrorist Plots • Anarchists target big names in society:
• Palmer (politician) • Rockefeller (business entrepreneur) • Oliver Wendell Holmes (Supreme Court Chief Justice)
• This is why Americans search for a return to the “America of old”
The Palmer Raids • As the Red Scare heightened, the government looked for
those who represented a “clear and present” danger to US national security
• Led by A. Mitchell Palmer, head of the Justice Department (attorney general)
• justice department is part of what branch?
A. Mitchell Palmer • created the FBI
• J. Edgar Hoover • Conducted two raids in 1919 and 1920
• arrests 6000 immigrants, aliens, labor leaders • tried to deport them all • 550 deported, 4000 released
Response to the Palmer Raids • Applause at first
• public outcry after the facts come out: • bogus search warrants (4th) • evidence falsified, right against self-incrimination (5th)
• practiced law after losing his nomination bid in the 1920 election
Social Issues of the 1920’s • Flappers & Vamps!
• wished to break with the past (mothers) • shorter hair, shorter skirts, more make-up • would go out alone, smoke/drink • clubs (Charleston) • The 19th Amendment (1920)
The Rise of American Culture • Mass Media: Billboards, radio, movies
• promoted the creation of a national culture
Radio • Affordable
• NBC(1925) & CBS (1929)
• George Burns, Groucho Marx, Bing Crosby, Jack Benny • FDR’s “fireside chats”
Sports • Football, Baseball & Boxing
• Lou Gehrig/Babe Ruth
Movies • The Jazz Singer
• Mickey Mouse
• For the first time, sound was put to the movements on the screen
Hero Worship • People longed for old-fashioned virtues
• people got fed up with immoral behavior • Charles Lindbergh, Amelia Earhart, Babe Ruth, Jack
Dempsey
Warm-up #2: Review Notes • Explain what the rise of films, radio broadcasting, and the
news media helped bring about in the United States at the beginning of the 1920’s?
The Scopes Monkey Trial • John Scopes – science teacher in TN • taught evolution in Biology class, which was banned because
it contradicted the teachings on the Bible • Legal Issue:
• the right to teach evolution in public schools
The Scopes Monkey Trial • Prosecution: State of Tennessee (William Jennings Bryan)
• Called themselves fundamentalists • believed in a literal interpretation of the Bible
• Defense: John Scopes (Clarence Darrow of the ACLU) • believed in Evolution and the theories of Charles Darwin • taught them purposefully
Tennessee v. John Scopes (1925)
The Scopes Monkey Trial • Scopes was found guilty of teaching evolution
• Fundamentalists lost serious momentum as a result of this decision
• Conviction was later overturned (did little to change interpretations)
Prohibition (18th Amendment) • Passed in 1919, this Amendment would lead to the rise of
organized crime • politicians in the 1920’s had to disclose if they were in favor
or a “wet” or “dry” society • Bootleggers, speakeasies popped up everywhere • In 1933, the 21st Amendment officially ended the prohibition
experiment
Prohibition • Enforced by the Volstead Act • Vetoed by Wilson (D) and overridden by each house of
Congress (R) by a 2/3 vote
Murder – Cal. P.C. §187
The Jazz Age • A truly American invention
• Louis Armstrong • Duke Ellington
• Started in the deep south and migrated north to Harlem during the Great Migration • blues • gospel
The Harlem Renaissance • The awakening of African American literary and musical
talent • James Weldon Johnson and Zora Neale Hurston, as well as Langston hughes embodied the Harlem Renaissance
Warm-up #3: Review Notes • List Amendments 18-27!!!!
The Election of 1928 • Al Smith (D):
• From NY where he was a four-time governor • pro-immigrant • Catholic
The Election of 1928 • Herbert Hoover (R):
• Sec. of Commerce under Harding and Coolidge • self-made millionaire • good times would get better • wins easily
Causes of the Stock Market Crash • It seemed that everybody was investing in the stock market • people bought stock on margin (get rich quick attitude) • made for a lot of rich Americans on paper.
Stock Market Principles • Stock- ownership of a company • point is to invest for the long-term • buy low and sell high • many factors that determine worth of stock
Stock Market Ascent and descent • The upward climb of the stock market benefitted the rich • created a “bubble” • in late October 1929, the Dow Jones Industrial Average
began to drop • people started to sell their stock
Bank Failures • After the crash, thousands of banks will have to close, not
being able to pay depositors back • No safety net (today federal insurance) • People lost confidence in their banks
The President’s Response • As the economy collapsed, people began to blame President
Hoover • “Hoovervilles” will spring up across the country, one effect of
wage cuts and unemployment
The President’s Response • As the economy continued to decline, Hoover believed the
gov’t. should let businesses voluntarily control themselves • no stimulus packages here! • Republican idea
The President’s Response • As a result of this inaction, the view of economics and the
government’s role in economics would change forever • the gov’t. is much more pro-active today in business affairs
Causes of the Great Depression • Overexpansion of Agriculture -
• WWI and increased demand • as war ended, farmers kept supply high • as demand decreased, farmers increased supply
Causes of the Great Depression • Overexpansion of industry -
• Industry produced more goods than most consumers could afford or want
• S>D as a result, reduced prices, reduced wages, stalled the economy
Causes of the Great Depression • Technological unemployment -
• Companies began to replace people with machines • work could be done quicker, more efficiently, and at a lower cost to the producer.
Causes of the Great Depression • Overexpansion of credit -
• credit was too easy in the 1920’s • people overextended themselves • as the economy turned south, loans couldn’t be repaid • FED tightened credit
• wrong move
Causes of the Great Depression • “Overspeculation” –
• bought stock w/ borrowed money & then pledged those stocks as collateral to buy more stocks
• Bought stock in companies with poor financial health
• Bought stock on optimism instead of real value
The Government’s Response • Voluntary steps by government and business
• Hoover advocated “confidence” • called big business leaders to white house
• promised to keep wages up • spent more on public buildings roads
The Government’s Response • Agricultural Marketing Act (June 1929)
• Federal Farm Board • 1st gov’t. attempt to stabilize crop prices • proved to be a failure • lost over $150,000,000.00
The Reconstruction Finance Corporation • Reflected theory of trickle down economics • Helped economy as a whole through loans • Government extended credit to banks who would then extend
credit to individuals in society
Warm-up #4: Review Notes • Who did American’s blame for the decline of the American
economy into the depression? • what were the shantytowns many American moved into called?
• “Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.” Charles Dickens David Copperfield
The Election of 1932 • Herbert Hoover (R) • FDR (D)
• People liked his optimism and his willingness to experiment with the economy
• Major Issues facing voters: The Depression and Prohibition
The “New Deal” • FDR won easily in 1932 by promising Americans a “New
Deal” • He was a capitalist but laissez-faire government was dead at this point
• Election marked a change in how Americans viewed the role and responsibilities of the national government
• “New Deal” was the most massive program of social legislation (laws) ever!
• Creation of several major federal agencies
The “Third American Revolution” • The Bonus Army Marchers – 20,000 jobless WWI Vets &
families set up camp in Washington D.C. • Wanted immediate payment of pension bonus (to be pd. in
‘45) • Pres. Hoover through Gen. Douglas MacArthur, used force to
drive them out of Washington D.C.
The “Third American Revolution” • The “Demagogues”
• FDR’s critics • They manipulated people with half-truths and scare tactics • Called for socialism and a change of government • Huey Long, Father Charles Coughlin, Dr. Francis Townsend
The “Third American Revolution” • The Progressives were another group of people who
criticized the government for not doing enough to fix the problems of society • FDR was not doing enough to redistribute the wealth
New Deal Programs • The “Bank Holiday”
• FDR closed all banks in the United States for a period of 4 days the day after he took the office of the Presidency.
• He did this to inspect the financial health of all banks • Eased the “run on the banks” • Confidence back into the banking system
• More $ in accounts than taking out • Established FDIC
New Deal Programs • In his first 100 days, FDR, with the help of his “brain trust,”
sent social program after social program to Congress for passage into law.
• These programs were referred to as FDR’s alphabet soup
social programs • because of all the acronyms!
Alphabet Soup
New Deal Programs
The First New Deal, 1933 - 1945
New Deal Programs • The Three R’s: Relief, Recovery, Reform
• aimed at combating the Great Depression • Relief: AAA, CCC, WPA, TVA, NRA, PWA • Recovery: NLRB, RFC • Reform: FDIC, FHA, SEC, SSA
• Which of these programs are still around today? (Can you name the six?)
Alphabet Soup
The Second New Deal The Second Hundred Days • After his first 100 days in office, stronger focus on Social
Reforms • Citizens & politicians began to complain that FDR was
“socializing” the United States too much and starting to stray from the values of hard work & initiative the country was built on. • New programs failed to bring about significant economic improvement
WPA
The Second New Deal • Court Packing (1937) - FDR’s BIGGEST COMPLAINT
• As many of his programs came under fire, they started being challenged @ Sup. Ct.
• When the Sup. Ct. refused to uphold the Constitutionality of some of his programs, he threatened the 9 member Supreme Court w/ adding more justices
• He wanted to ‘pack’ the U.S. Sup. Ct. w/ justices favoring his programs
NLRB & The Wagner Act • NLRB called The Wagner Act (1935)
• collective bargaining & closed shops • Led to a rise in unions and numbers of strikes • Outlawed spying on union activities & blacklisting (practice in which employers agreed not to hire union leaders)
• Led to sit-down strikes, which were so popular they were outlawed by the Sup. Ct.
Social Security Act (1935) • Social Security system
• Provide financial security (regular payments) to those who could not support themselves • Old-age pensions & survivors’ benefits
• early as 62 or full at 65 • Unemployment Insurance
• > 8 employees • Aid for dependent children, the blind, & the disabled
The Election of 1936 • FDR (D) vs. Alf Landon (R) KS Gov’nr • 523 electoral votes to 8 electoral votes
• every state except ME & VT • wins by a landslide • This victory showed support for FDR and all of his “New
Deal” programs
The Recession of 1937 • All of these social programs cost lots and lots of money
(Nothing comes free)
• led to a rise in national debt (spending more than it was bringing in)
• Our debt today (the debt clock) • Reduced consumer spending (ills of a consumer society)
Social Consequences of The New Deal • Minority groups lost jobs to whites • Women who worked were criticized • The “Depression Generation” and credit buying • Role of the First Lady in government • Legacy of the New Deal-restored hope • Role of Movies in society • Any effects of this legislation today?
2011 Federal Budget Expenditures
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1/30/13
6
The Roaring 20’s, The Great Depression, & The New Deal Presented by Mr. Anderson, M.Ed., J.D.
The Roaring 20’s • The Election of 1920
• wins by a landslide (60% of the popular vote vs. 34% for James Cox)
• Advocated social stability and big business (people trusted him)
• weary of sacrifice at home; healing was needed for normalcy
The “Return to Normalcy” • Laissez-faire government
• “The business of the American people is… business” – Calvin Coolidge)
The “Return to Normalcy” • Isolationism - The foreign policy that Republican presidents in
the 1920’s will follow • stay out of foreign affairs • avoid political and economic alliances
• America becomes isolationist for several reasons: • Because of the Treaty of Versailles • Because of the League of Nations, which called for disarmament
• to support big business
Political Scandal Under Harding • Harding’s Secretary of the Interior Albert B. Fall sold oil
drilling rights in Elk Hills, CA and Teapot Dome, Wyoming for $300,000
• Edward Doheny - owned oil fields in CA
• Frank Seaver - worked for Doheny
• Harry Sinclair - owned oil fields in WY
The Growth of the American Economy in the 1920’s • Recession after WWI
• economy slowed down • returning soldiers needed work (supply and demand) • COL doubled
• labor strikes for better working conditions and higher wages • Boston police strike
• puts Coolidge on the scene • led to riots, his successful handling will make him popular
The “Farm Problem” • No Roaring 20’s for the farmers
• after wartime demand ended, wheat and cotton prices plummeted
• During the good times, they had bought new machinery with loans
• incurred massive debt
Henry Ford and the Model T • Revolutionized the auto industry with the assembly line
(economies of scale) • Externalities -
• gas stations • motels • roads • part stores • tire companies
Installment Buying • To this point everything was done in cash! • Jumpstarts the Consumer economy and consumer culture we
have today! • with credit, demand grew • pushed up prices, but supply kept up • led to the construction of power plants • higher standard of living, more leisure time and… • chain stores
Those Who Did Not Benefit • Farmers
• Supply & demand during WWI & after WWI • Farmers should have cut supply after WWI
• Unskilled Labor & Migrant Workers • Remained poor • Hit the hardest of all
Warm-up #1: Review Notes • Briefly describe president Warren Harding’s stance on:
• foreign policy • treatment towards big business
• Briefly define installment buying.
• Explain the economic effect of the advent of installment buying.
The “Red Scare” • The “Red Scare” was in response to the Russian revolution
of 1917. • In desiring “normalcy,” American citizens sought to destroy
anybody or anything perceived to be “un-American.”
Nativism • The idea of returning America to its original state
• Return of the KKK • targeted Jews, African Americans, Immigrants
Nativism • Anti-immigration laws passed in the early 1920’s put quotas
or limits on the numbers of people that could come from certain countries (national origins act of 1924)
• no Asians • very few Pols, Italians, and Russians
These people represented competition in the labor market
Terrorist Plots • Anarchists target big names in society:
• Palmer (politician) • Rockefeller (business entrepreneur) • Oliver Wendell Holmes (Supreme Court Chief Justice)
• This is why Americans search for a return to the “America of old”
The Palmer Raids • As the Red Scare heightened, the government looked for
those who represented a “clear and present” danger to US national security
• Led by A. Mitchell Palmer, head of the Justice Department (attorney general)
• justice department is part of what branch?
A. Mitchell Palmer • created the FBI
• J. Edgar Hoover • Conducted two raids in 1919 and 1920
• arrests 6000 immigrants, aliens, labor leaders • tried to deport them all • 550 deported, 4000 released
Response to the Palmer Raids • Applause at first
• public outcry after the facts come out: • bogus search warrants (4th) • evidence falsified, right against self-incrimination (5th)
• practiced law after losing his nomination bid in the 1920 election
Social Issues of the 1920’s • Flappers & Vamps!
• wished to break with the past (mothers) • shorter hair, shorter skirts, more make-up • would go out alone, smoke/drink • clubs (Charleston) • The 19th Amendment (1920)
The Rise of American Culture • Mass Media: Billboards, radio, movies
• promoted the creation of a national culture
Radio • Affordable
• NBC(1925) & CBS (1929)
• George Burns, Groucho Marx, Bing Crosby, Jack Benny • FDR’s “fireside chats”
Sports • Football, Baseball & Boxing
• Lou Gehrig/Babe Ruth
Movies • The Jazz Singer
• Mickey Mouse
• For the first time, sound was put to the movements on the screen
Hero Worship • People longed for old-fashioned virtues
• people got fed up with immoral behavior • Charles Lindbergh, Amelia Earhart, Babe Ruth, Jack
Dempsey
Warm-up #2: Review Notes • Explain what the rise of films, radio broadcasting, and the
news media helped bring about in the United States at the beginning of the 1920’s?
The Scopes Monkey Trial • John Scopes – science teacher in TN • taught evolution in Biology class, which was banned because
it contradicted the teachings on the Bible • Legal Issue:
• the right to teach evolution in public schools
The Scopes Monkey Trial • Prosecution: State of Tennessee (William Jennings Bryan)
• Called themselves fundamentalists • believed in a literal interpretation of the Bible
• Defense: John Scopes (Clarence Darrow of the ACLU) • believed in Evolution and the theories of Charles Darwin • taught them purposefully
Tennessee v. John Scopes (1925)
The Scopes Monkey Trial • Scopes was found guilty of teaching evolution
• Fundamentalists lost serious momentum as a result of this decision
• Conviction was later overturned (did little to change interpretations)
Prohibition (18th Amendment) • Passed in 1919, this Amendment would lead to the rise of
organized crime • politicians in the 1920’s had to disclose if they were in favor
or a “wet” or “dry” society • Bootleggers, speakeasies popped up everywhere • In 1933, the 21st Amendment officially ended the prohibition
experiment
Prohibition • Enforced by the Volstead Act • Vetoed by Wilson (D) and overridden by each house of
Congress (R) by a 2/3 vote
Murder – Cal. P.C. §187
The Jazz Age • A truly American invention
• Louis Armstrong • Duke Ellington
• Started in the deep south and migrated north to Harlem during the Great Migration • blues • gospel
The Harlem Renaissance • The awakening of African American literary and musical
talent • James Weldon Johnson and Zora Neale Hurston, as well as Langston hughes embodied the Harlem Renaissance
Warm-up #3: Review Notes • List Amendments 18-27!!!!
The Election of 1928 • Al Smith (D):
• From NY where he was a four-time governor • pro-immigrant • Catholic
The Election of 1928 • Herbert Hoover (R):
• Sec. of Commerce under Harding and Coolidge • self-made millionaire • good times would get better • wins easily
Causes of the Stock Market Crash • It seemed that everybody was investing in the stock market • people bought stock on margin (get rich quick attitude) • made for a lot of rich Americans on paper.
Stock Market Principles • Stock- ownership of a company • point is to invest for the long-term • buy low and sell high • many factors that determine worth of stock
Stock Market Ascent and descent • The upward climb of the stock market benefitted the rich • created a “bubble” • in late October 1929, the Dow Jones Industrial Average
began to drop • people started to sell their stock
Bank Failures • After the crash, thousands of banks will have to close, not
being able to pay depositors back • No safety net (today federal insurance) • People lost confidence in their banks
The President’s Response • As the economy collapsed, people began to blame President
Hoover • “Hoovervilles” will spring up across the country, one effect of
wage cuts and unemployment
The President’s Response • As the economy continued to decline, Hoover believed the
gov’t. should let businesses voluntarily control themselves • no stimulus packages here! • Republican idea
The President’s Response • As a result of this inaction, the view of economics and the
government’s role in economics would change forever • the gov’t. is much more pro-active today in business affairs
Causes of the Great Depression • Overexpansion of Agriculture -
• WWI and increased demand • as war ended, farmers kept supply high • as demand decreased, farmers increased supply
Causes of the Great Depression • Overexpansion of industry -
• Industry produced more goods than most consumers could afford or want
• S>D as a result, reduced prices, reduced wages, stalled the economy
Causes of the Great Depression • Technological unemployment -
• Companies began to replace people with machines • work could be done quicker, more efficiently, and at a lower cost to the producer.
Causes of the Great Depression • Overexpansion of credit -
• credit was too easy in the 1920’s • people overextended themselves • as the economy turned south, loans couldn’t be repaid • FED tightened credit
• wrong move
Causes of the Great Depression • “Overspeculation” –
• bought stock w/ borrowed money & then pledged those stocks as collateral to buy more stocks
• Bought stock in companies with poor financial health
• Bought stock on optimism instead of real value
The Government’s Response • Voluntary steps by government and business
• Hoover advocated “confidence” • called big business leaders to white house
• promised to keep wages up • spent more on public buildings roads
The Government’s Response • Agricultural Marketing Act (June 1929)
• Federal Farm Board • 1st gov’t. attempt to stabilize crop prices • proved to be a failure • lost over $150,000,000.00
The Reconstruction Finance Corporation • Reflected theory of trickle down economics • Helped economy as a whole through loans • Government extended credit to banks who would then extend
credit to individuals in society
Warm-up #4: Review Notes • Who did American’s blame for the decline of the American
economy into the depression? • what were the shantytowns many American moved into called?
• “Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.” Charles Dickens David Copperfield
The Election of 1932 • Herbert Hoover (R) • FDR (D)
• People liked his optimism and his willingness to experiment with the economy
• Major Issues facing voters: The Depression and Prohibition
The “New Deal” • FDR won easily in 1932 by promising Americans a “New
Deal” • He was a capitalist but laissez-faire government was dead at this point
• Election marked a change in how Americans viewed the role and responsibilities of the national government
• “New Deal” was the most massive program of social legislation (laws) ever!
• Creation of several major federal agencies
The “Third American Revolution” • The Bonus Army Marchers – 20,000 jobless WWI Vets &
families set up camp in Washington D.C. • Wanted immediate payment of pension bonus (to be pd. in
‘45) • Pres. Hoover through Gen. Douglas MacArthur, used force to
drive them out of Washington D.C.
The “Third American Revolution” • The “Demagogues”
• FDR’s critics • They manipulated people with half-truths and scare tactics • Called for socialism and a change of government • Huey Long, Father Charles Coughlin, Dr. Francis Townsend
The “Third American Revolution” • The Progressives were another group of people who
criticized the government for not doing enough to fix the problems of society • FDR was not doing enough to redistribute the wealth
New Deal Programs • The “Bank Holiday”
• FDR closed all banks in the United States for a period of 4 days the day after he took the office of the Presidency.
• He did this to inspect the financial health of all banks • Eased the “run on the banks” • Confidence back into the banking system
• More $ in accounts than taking out • Established FDIC
New Deal Programs • In his first 100 days, FDR, with the help of his “brain trust,”
sent social program after social program to Congress for passage into law.
• These programs were referred to as FDR’s alphabet soup
social programs • because of all the acronyms!
Alphabet Soup
New Deal Programs
The First New Deal, 1933 - 1945
New Deal Programs • The Three R’s: Relief, Recovery, Reform
• aimed at combating the Great Depression • Relief: AAA, CCC, WPA, TVA, NRA, PWA • Recovery: NLRB, RFC • Reform: FDIC, FHA, SEC, SSA
• Which of these programs are still around today? (Can you name the six?)
Alphabet Soup
The Second New Deal The Second Hundred Days • After his first 100 days in office, stronger focus on Social
Reforms • Citizens & politicians began to complain that FDR was
“socializing” the United States too much and starting to stray from the values of hard work & initiative the country was built on. • New programs failed to bring about significant economic improvement
WPA
The Second New Deal • Court Packing (1937) - FDR’s BIGGEST COMPLAINT
• As many of his programs came under fire, they started being challenged @ Sup. Ct.
• When the Sup. Ct. refused to uphold the Constitutionality of some of his programs, he threatened the 9 member Supreme Court w/ adding more justices
• He wanted to ‘pack’ the U.S. Sup. Ct. w/ justices favoring his programs
NLRB & The Wagner Act • NLRB called The Wagner Act (1935)
• collective bargaining & closed shops • Led to a rise in unions and numbers of strikes • Outlawed spying on union activities & blacklisting (practice in which employers agreed not to hire union leaders)
• Led to sit-down strikes, which were so popular they were outlawed by the Sup. Ct.
Social Security Act (1935) • Social Security system
• Provide financial security (regular payments) to those who could not support themselves • Old-age pensions & survivors’ benefits
• early as 62 or full at 65 • Unemployment Insurance
• > 8 employees • Aid for dependent children, the blind, & the disabled
The Election of 1936 • FDR (D) vs. Alf Landon (R) KS Gov’nr • 523 electoral votes to 8 electoral votes
• every state except ME & VT • wins by a landslide • This victory showed support for FDR and all of his “New
Deal” programs
The Recession of 1937 • All of these social programs cost lots and lots of money
(Nothing comes free)
• led to a rise in national debt (spending more than it was bringing in)
• Our debt today (the debt clock) • Reduced consumer spending (ills of a consumer society)
Social Consequences of The New Deal • Minority groups lost jobs to whites • Women who worked were criticized • The “Depression Generation” and credit buying • Role of the First Lady in government • Legacy of the New Deal-restored hope • Role of Movies in society • Any effects of this legislation today?
2011 Federal Budget Expenditures
1
2
3
4
1
2
5
1
2
6
1
2
7
8
9
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71
72
73
74
1/30/13
7
The Roaring 20’s, The Great Depression, & The New Deal Presented by Mr. Anderson, M.Ed., J.D.
The Roaring 20’s • The Election of 1920
• wins by a landslide (60% of the popular vote vs. 34% for James Cox)
• Advocated social stability and big business (people trusted him)
• weary of sacrifice at home; healing was needed for normalcy
The “Return to Normalcy” • Laissez-faire government
• “The business of the American people is… business” – Calvin Coolidge)
The “Return to Normalcy” • Isolationism - The foreign policy that Republican presidents in
the 1920’s will follow • stay out of foreign affairs • avoid political and economic alliances
• America becomes isolationist for several reasons: • Because of the Treaty of Versailles • Because of the League of Nations, which called for disarmament
• to support big business
Political Scandal Under Harding • Harding’s Secretary of the Interior Albert B. Fall sold oil
drilling rights in Elk Hills, CA and Teapot Dome, Wyoming for $300,000
• Edward Doheny - owned oil fields in CA
• Frank Seaver - worked for Doheny
• Harry Sinclair - owned oil fields in WY
The Growth of the American Economy in the 1920’s • Recession after WWI
• economy slowed down • returning soldiers needed work (supply and demand) • COL doubled
• labor strikes for better working conditions and higher wages • Boston police strike
• puts Coolidge on the scene • led to riots, his successful handling will make him popular
The “Farm Problem” • No Roaring 20’s for the farmers
• after wartime demand ended, wheat and cotton prices plummeted
• During the good times, they had bought new machinery with loans
• incurred massive debt
Henry Ford and the Model T • Revolutionized the auto industry with the assembly line
(economies of scale) • Externalities -
• gas stations • motels • roads • part stores • tire companies
Installment Buying • To this point everything was done in cash! • Jumpstarts the Consumer economy and consumer culture we
have today! • with credit, demand grew • pushed up prices, but supply kept up • led to the construction of power plants • higher standard of living, more leisure time and… • chain stores
Those Who Did Not Benefit • Farmers
• Supply & demand during WWI & after WWI • Farmers should have cut supply after WWI
• Unskilled Labor & Migrant Workers • Remained poor • Hit the hardest of all
Warm-up #1: Review Notes • Briefly describe president Warren Harding’s stance on:
• foreign policy • treatment towards big business
• Briefly define installment buying.
• Explain the economic effect of the advent of installment buying.
The “Red Scare” • The “Red Scare” was in response to the Russian revolution
of 1917. • In desiring “normalcy,” American citizens sought to destroy
anybody or anything perceived to be “un-American.”
Nativism • The idea of returning America to its original state
• Return of the KKK • targeted Jews, African Americans, Immigrants
Nativism • Anti-immigration laws passed in the early 1920’s put quotas
or limits on the numbers of people that could come from certain countries (national origins act of 1924)
• no Asians • very few Pols, Italians, and Russians
These people represented competition in the labor market
Terrorist Plots • Anarchists target big names in society:
• Palmer (politician) • Rockefeller (business entrepreneur) • Oliver Wendell Holmes (Supreme Court Chief Justice)
• This is why Americans search for a return to the “America of old”
The Palmer Raids • As the Red Scare heightened, the government looked for
those who represented a “clear and present” danger to US national security
• Led by A. Mitchell Palmer, head of the Justice Department (attorney general)
• justice department is part of what branch?
A. Mitchell Palmer • created the FBI
• J. Edgar Hoover • Conducted two raids in 1919 and 1920
• arrests 6000 immigrants, aliens, labor leaders • tried to deport them all • 550 deported, 4000 released
Response to the Palmer Raids • Applause at first
• public outcry after the facts come out: • bogus search warrants (4th) • evidence falsified, right against self-incrimination (5th)
• practiced law after losing his nomination bid in the 1920 election
Social Issues of the 1920’s • Flappers & Vamps!
• wished to break with the past (mothers) • shorter hair, shorter skirts, more make-up • would go out alone, smoke/drink • clubs (Charleston) • The 19th Amendment (1920)
The Rise of American Culture • Mass Media: Billboards, radio, movies
• promoted the creation of a national culture
Radio • Affordable
• NBC(1925) & CBS (1929)
• George Burns, Groucho Marx, Bing Crosby, Jack Benny • FDR’s “fireside chats”
Sports • Football, Baseball & Boxing
• Lou Gehrig/Babe Ruth
Movies • The Jazz Singer
• Mickey Mouse
• For the first time, sound was put to the movements on the screen
Hero Worship • People longed for old-fashioned virtues
• people got fed up with immoral behavior • Charles Lindbergh, Amelia Earhart, Babe Ruth, Jack
Dempsey
Warm-up #2: Review Notes • Explain what the rise of films, radio broadcasting, and the
news media helped bring about in the United States at the beginning of the 1920’s?
The Scopes Monkey Trial • John Scopes – science teacher in TN • taught evolution in Biology class, which was banned because
it contradicted the teachings on the Bible • Legal Issue:
• the right to teach evolution in public schools
The Scopes Monkey Trial • Prosecution: State of Tennessee (William Jennings Bryan)
• Called themselves fundamentalists • believed in a literal interpretation of the Bible
• Defense: John Scopes (Clarence Darrow of the ACLU) • believed in Evolution and the theories of Charles Darwin • taught them purposefully
Tennessee v. John Scopes (1925)
The Scopes Monkey Trial • Scopes was found guilty of teaching evolution
• Fundamentalists lost serious momentum as a result of this decision
• Conviction was later overturned (did little to change interpretations)
Prohibition (18th Amendment) • Passed in 1919, this Amendment would lead to the rise of
organized crime • politicians in the 1920’s had to disclose if they were in favor
or a “wet” or “dry” society • Bootleggers, speakeasies popped up everywhere • In 1933, the 21st Amendment officially ended the prohibition
experiment
Prohibition • Enforced by the Volstead Act • Vetoed by Wilson (D) and overridden by each house of
Congress (R) by a 2/3 vote
Murder – Cal. P.C. §187
The Jazz Age • A truly American invention
• Louis Armstrong • Duke Ellington
• Started in the deep south and migrated north to Harlem during the Great Migration • blues • gospel
The Harlem Renaissance • The awakening of African American literary and musical
talent • James Weldon Johnson and Zora Neale Hurston, as well as Langston hughes embodied the Harlem Renaissance
Warm-up #3: Review Notes • List Amendments 18-27!!!!
The Election of 1928 • Al Smith (D):
• From NY where he was a four-time governor • pro-immigrant • Catholic
The Election of 1928 • Herbert Hoover (R):
• Sec. of Commerce under Harding and Coolidge • self-made millionaire • good times would get better • wins easily
Causes of the Stock Market Crash • It seemed that everybody was investing in the stock market • people bought stock on margin (get rich quick attitude) • made for a lot of rich Americans on paper.
Stock Market Principles • Stock- ownership of a company • point is to invest for the long-term • buy low and sell high • many factors that determine worth of stock
Stock Market Ascent and descent • The upward climb of the stock market benefitted the rich • created a “bubble” • in late October 1929, the Dow Jones Industrial Average
began to drop • people started to sell their stock
Bank Failures • After the crash, thousands of banks will have to close, not
being able to pay depositors back • No safety net (today federal insurance) • People lost confidence in their banks
The President’s Response • As the economy collapsed, people began to blame President
Hoover • “Hoovervilles” will spring up across the country, one effect of
wage cuts and unemployment
The President’s Response • As the economy continued to decline, Hoover believed the
gov’t. should let businesses voluntarily control themselves • no stimulus packages here! • Republican idea
The President’s Response • As a result of this inaction, the view of economics and the
government’s role in economics would change forever • the gov’t. is much more pro-active today in business affairs
Causes of the Great Depression • Overexpansion of Agriculture -
• WWI and increased demand • as war ended, farmers kept supply high • as demand decreased, farmers increased supply
Causes of the Great Depression • Overexpansion of industry -
• Industry produced more goods than most consumers could afford or want
• S>D as a result, reduced prices, reduced wages, stalled the economy
Causes of the Great Depression • Technological unemployment -
• Companies began to replace people with machines • work could be done quicker, more efficiently, and at a lower cost to the producer.
Causes of the Great Depression • Overexpansion of credit -
• credit was too easy in the 1920’s • people overextended themselves • as the economy turned south, loans couldn’t be repaid • FED tightened credit
• wrong move
Causes of the Great Depression • “Overspeculation” –
• bought stock w/ borrowed money & then pledged those stocks as collateral to buy more stocks
• Bought stock in companies with poor financial health
• Bought stock on optimism instead of real value
The Government’s Response • Voluntary steps by government and business
• Hoover advocated “confidence” • called big business leaders to white house
• promised to keep wages up • spent more on public buildings roads
The Government’s Response • Agricultural Marketing Act (June 1929)
• Federal Farm Board • 1st gov’t. attempt to stabilize crop prices • proved to be a failure • lost over $150,000,000.00
The Reconstruction Finance Corporation • Reflected theory of trickle down economics • Helped economy as a whole through loans • Government extended credit to banks who would then extend
credit to individuals in society
Warm-up #4: Review Notes • Who did American’s blame for the decline of the American
economy into the depression? • what were the shantytowns many American moved into called?
• “Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.” Charles Dickens David Copperfield
The Election of 1932 • Herbert Hoover (R) • FDR (D)
• People liked his optimism and his willingness to experiment with the economy
• Major Issues facing voters: The Depression and Prohibition
The “New Deal” • FDR won easily in 1932 by promising Americans a “New
Deal” • He was a capitalist but laissez-faire government was dead at this point
• Election marked a change in how Americans viewed the role and responsibilities of the national government
• “New Deal” was the most massive program of social legislation (laws) ever!
• Creation of several major federal agencies
The “Third American Revolution” • The Bonus Army Marchers – 20,000 jobless WWI Vets &
families set up camp in Washington D.C. • Wanted immediate payment of pension bonus (to be pd. in
‘45) • Pres. Hoover through Gen. Douglas MacArthur, used force to
drive them out of Washington D.C.
The “Third American Revolution” • The “Demagogues”
• FDR’s critics • They manipulated people with half-truths and scare tactics • Called for socialism and a change of government • Huey Long, Father Charles Coughlin, Dr. Francis Townsend
The “Third American Revolution” • The Progressives were another group of people who
criticized the government for not doing enough to fix the problems of society • FDR was not doing enough to redistribute the wealth
New Deal Programs • The “Bank Holiday”
• FDR closed all banks in the United States for a period of 4 days the day after he took the office of the Presidency.
• He did this to inspect the financial health of all banks • Eased the “run on the banks” • Confidence back into the banking system
• More $ in accounts than taking out • Established FDIC
New Deal Programs • In his first 100 days, FDR, with the help of his “brain trust,”
sent social program after social program to Congress for passage into law.
• These programs were referred to as FDR’s alphabet soup
social programs • because of all the acronyms!
Alphabet Soup
New Deal Programs
The First New Deal, 1933 - 1945
New Deal Programs • The Three R’s: Relief, Recovery, Reform
• aimed at combating the Great Depression • Relief: AAA, CCC, WPA, TVA, NRA, PWA • Recovery: NLRB, RFC • Reform: FDIC, FHA, SEC, SSA
• Which of these programs are still around today? (Can you name the six?)
Alphabet Soup
The Second New Deal The Second Hundred Days • After his first 100 days in office, stronger focus on Social
Reforms • Citizens & politicians began to complain that FDR was
“socializing” the United States too much and starting to stray from the values of hard work & initiative the country was built on. • New programs failed to bring about significant economic improvement
WPA
The Second New Deal • Court Packing (1937) - FDR’s BIGGEST COMPLAINT
• As many of his programs came under fire, they started being challenged @ Sup. Ct.
• When the Sup. Ct. refused to uphold the Constitutionality of some of his programs, he threatened the 9 member Supreme Court w/ adding more justices
• He wanted to ‘pack’ the U.S. Sup. Ct. w/ justices favoring his programs
NLRB & The Wagner Act • NLRB called The Wagner Act (1935)
• collective bargaining & closed shops • Led to a rise in unions and numbers of strikes • Outlawed spying on union activities & blacklisting (practice in which employers agreed not to hire union leaders)
• Led to sit-down strikes, which were so popular they were outlawed by the Sup. Ct.
Social Security Act (1935) • Social Security system
• Provide financial security (regular payments) to those who could not support themselves • Old-age pensions & survivors’ benefits
• early as 62 or full at 65 • Unemployment Insurance
• > 8 employees • Aid for dependent children, the blind, & the disabled
The Election of 1936 • FDR (D) vs. Alf Landon (R) KS Gov’nr • 523 electoral votes to 8 electoral votes
• every state except ME & VT • wins by a landslide • This victory showed support for FDR and all of his “New
Deal” programs
The Recession of 1937 • All of these social programs cost lots and lots of money
(Nothing comes free)
• led to a rise in national debt (spending more than it was bringing in)
• Our debt today (the debt clock) • Reduced consumer spending (ills of a consumer society)
Social Consequences of The New Deal • Minority groups lost jobs to whites • Women who worked were criticized • The “Depression Generation” and credit buying • Role of the First Lady in government • Legacy of the New Deal-restored hope • Role of Movies in society • Any effects of this legislation today?
2011 Federal Budget Expenditures
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1/30/13
8
The Roaring 20’s, The Great Depression, & The New Deal Presented by Mr. Anderson, M.Ed., J.D.
The Roaring 20’s • The Election of 1920
• wins by a landslide (60% of the popular vote vs. 34% for James Cox)
• Advocated social stability and big business (people trusted him)
• weary of sacrifice at home; healing was needed for normalcy
The “Return to Normalcy” • Laissez-faire government
• “The business of the American people is… business” – Calvin Coolidge)
The “Return to Normalcy” • Isolationism - The foreign policy that Republican presidents in
the 1920’s will follow • stay out of foreign affairs • avoid political and economic alliances
• America becomes isolationist for several reasons: • Because of the Treaty of Versailles • Because of the League of Nations, which called for disarmament
• to support big business
Political Scandal Under Harding • Harding’s Secretary of the Interior Albert B. Fall sold oil
drilling rights in Elk Hills, CA and Teapot Dome, Wyoming for $300,000
• Edward Doheny - owned oil fields in CA
• Frank Seaver - worked for Doheny
• Harry Sinclair - owned oil fields in WY
The Growth of the American Economy in the 1920’s • Recession after WWI
• economy slowed down • returning soldiers needed work (supply and demand) • COL doubled
• labor strikes for better working conditions and higher wages • Boston police strike
• puts Coolidge on the scene • led to riots, his successful handling will make him popular
The “Farm Problem” • No Roaring 20’s for the farmers
• after wartime demand ended, wheat and cotton prices plummeted
• During the good times, they had bought new machinery with loans
• incurred massive debt
Henry Ford and the Model T • Revolutionized the auto industry with the assembly line
(economies of scale) • Externalities -
• gas stations • motels • roads • part stores • tire companies
Installment Buying • To this point everything was done in cash! • Jumpstarts the Consumer economy and consumer culture we
have today! • with credit, demand grew • pushed up prices, but supply kept up • led to the construction of power plants • higher standard of living, more leisure time and… • chain stores
Those Who Did Not Benefit • Farmers
• Supply & demand during WWI & after WWI • Farmers should have cut supply after WWI
• Unskilled Labor & Migrant Workers • Remained poor • Hit the hardest of all
Warm-up #1: Review Notes • Briefly describe president Warren Harding’s stance on:
• foreign policy • treatment towards big business
• Briefly define installment buying.
• Explain the economic effect of the advent of installment buying.
The “Red Scare” • The “Red Scare” was in response to the Russian revolution
of 1917. • In desiring “normalcy,” American citizens sought to destroy
anybody or anything perceived to be “un-American.”
Nativism • The idea of returning America to its original state
• Return of the KKK • targeted Jews, African Americans, Immigrants
Nativism • Anti-immigration laws passed in the early 1920’s put quotas
or limits on the numbers of people that could come from certain countries (national origins act of 1924)
• no Asians • very few Pols, Italians, and Russians
These people represented competition in the labor market
Terrorist Plots • Anarchists target big names in society:
• Palmer (politician) • Rockefeller (business entrepreneur) • Oliver Wendell Holmes (Supreme Court Chief Justice)
• This is why Americans search for a return to the “America of old”
The Palmer Raids • As the Red Scare heightened, the government looked for
those who represented a “clear and present” danger to US national security
• Led by A. Mitchell Palmer, head of the Justice Department (attorney general)
• justice department is part of what branch?
A. Mitchell Palmer • created the FBI
• J. Edgar Hoover • Conducted two raids in 1919 and 1920
• arrests 6000 immigrants, aliens, labor leaders • tried to deport them all • 550 deported, 4000 released
Response to the Palmer Raids • Applause at first
• public outcry after the facts come out: • bogus search warrants (4th) • evidence falsified, right against self-incrimination (5th)
• practiced law after losing his nomination bid in the 1920 election
Social Issues of the 1920’s • Flappers & Vamps!
• wished to break with the past (mothers) • shorter hair, shorter skirts, more make-up • would go out alone, smoke/drink • clubs (Charleston) • The 19th Amendment (1920)
The Rise of American Culture • Mass Media: Billboards, radio, movies
• promoted the creation of a national culture
Radio • Affordable
• NBC(1925) & CBS (1929)
• George Burns, Groucho Marx, Bing Crosby, Jack Benny • FDR’s “fireside chats”
Sports • Football, Baseball & Boxing
• Lou Gehrig/Babe Ruth
Movies • The Jazz Singer
• Mickey Mouse
• For the first time, sound was put to the movements on the screen
Hero Worship • People longed for old-fashioned virtues
• people got fed up with immoral behavior • Charles Lindbergh, Amelia Earhart, Babe Ruth, Jack
Dempsey
Warm-up #2: Review Notes • Explain what the rise of films, radio broadcasting, and the
news media helped bring about in the United States at the beginning of the 1920’s?
The Scopes Monkey Trial • John Scopes – science teacher in TN • taught evolution in Biology class, which was banned because
it contradicted the teachings on the Bible • Legal Issue:
• the right to teach evolution in public schools
The Scopes Monkey Trial • Prosecution: State of Tennessee (William Jennings Bryan)
• Called themselves fundamentalists • believed in a literal interpretation of the Bible
• Defense: John Scopes (Clarence Darrow of the ACLU) • believed in Evolution and the theories of Charles Darwin • taught them purposefully
Tennessee v. John Scopes (1925)
The Scopes Monkey Trial • Scopes was found guilty of teaching evolution
• Fundamentalists lost serious momentum as a result of this decision
• Conviction was later overturned (did little to change interpretations)
Prohibition (18th Amendment) • Passed in 1919, this Amendment would lead to the rise of
organized crime • politicians in the 1920’s had to disclose if they were in favor
or a “wet” or “dry” society • Bootleggers, speakeasies popped up everywhere • In 1933, the 21st Amendment officially ended the prohibition
experiment
Prohibition • Enforced by the Volstead Act • Vetoed by Wilson (D) and overridden by each house of
Congress (R) by a 2/3 vote
Murder – Cal. P.C. §187
The Jazz Age • A truly American invention
• Louis Armstrong • Duke Ellington
• Started in the deep south and migrated north to Harlem during the Great Migration • blues • gospel
The Harlem Renaissance • The awakening of African American literary and musical
talent • James Weldon Johnson and Zora Neale Hurston, as well as Langston hughes embodied the Harlem Renaissance
Warm-up #3: Review Notes • List Amendments 18-27!!!!
The Election of 1928 • Al Smith (D):
• From NY where he was a four-time governor • pro-immigrant • Catholic
The Election of 1928 • Herbert Hoover (R):
• Sec. of Commerce under Harding and Coolidge • self-made millionaire • good times would get better • wins easily
Causes of the Stock Market Crash • It seemed that everybody was investing in the stock market • people bought stock on margin (get rich quick attitude) • made for a lot of rich Americans on paper.
Stock Market Principles • Stock- ownership of a company • point is to invest for the long-term • buy low and sell high • many factors that determine worth of stock
Stock Market Ascent and descent • The upward climb of the stock market benefitted the rich • created a “bubble” • in late October 1929, the Dow Jones Industrial Average
began to drop • people started to sell their stock
Bank Failures • After the crash, thousands of banks will have to close, not
being able to pay depositors back • No safety net (today federal insurance) • People lost confidence in their banks
The President’s Response • As the economy collapsed, people began to blame President
Hoover • “Hoovervilles” will spring up across the country, one effect of
wage cuts and unemployment
The President’s Response • As the economy continued to decline, Hoover believed the
gov’t. should let businesses voluntarily control themselves • no stimulus packages here! • Republican idea
The President’s Response • As a result of this inaction, the view of economics and the
government’s role in economics would change forever • the gov’t. is much more pro-active today in business affairs
Causes of the Great Depression • Overexpansion of Agriculture -
• WWI and increased demand • as war ended, farmers kept supply high • as demand decreased, farmers increased supply
Causes of the Great Depression • Overexpansion of industry -
• Industry produced more goods than most consumers could afford or want
• S>D as a result, reduced prices, reduced wages, stalled the economy
Causes of the Great Depression • Technological unemployment -
• Companies began to replace people with machines • work could be done quicker, more efficiently, and at a lower cost to the producer.
Causes of the Great Depression • Overexpansion of credit -
• credit was too easy in the 1920’s • people overextended themselves • as the economy turned south, loans couldn’t be repaid • FED tightened credit
• wrong move
Causes of the Great Depression • “Overspeculation” –
• bought stock w/ borrowed money & then pledged those stocks as collateral to buy more stocks
• Bought stock in companies with poor financial health
• Bought stock on optimism instead of real value
The Government’s Response • Voluntary steps by government and business
• Hoover advocated “confidence” • called big business leaders to white house
• promised to keep wages up • spent more on public buildings roads
The Government’s Response • Agricultural Marketing Act (June 1929)
• Federal Farm Board • 1st gov’t. attempt to stabilize crop prices • proved to be a failure • lost over $150,000,000.00
The Reconstruction Finance Corporation • Reflected theory of trickle down economics • Helped economy as a whole through loans • Government extended credit to banks who would then extend
credit to individuals in society
Warm-up #4: Review Notes • Who did American’s blame for the decline of the American
economy into the depression? • what were the shantytowns many American moved into called?
• “Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.” Charles Dickens David Copperfield
The Election of 1932 • Herbert Hoover (R) • FDR (D)
• People liked his optimism and his willingness to experiment with the economy
• Major Issues facing voters: The Depression and Prohibition
The “New Deal” • FDR won easily in 1932 by promising Americans a “New
Deal” • He was a capitalist but laissez-faire government was dead at this point
• Election marked a change in how Americans viewed the role and responsibilities of the national government
• “New Deal” was the most massive program of social legislation (laws) ever!
• Creation of several major federal agencies
The “Third American Revolution” • The Bonus Army Marchers – 20,000 jobless WWI Vets &
families set up camp in Washington D.C. • Wanted immediate payment of pension bonus (to be pd. in
‘45) • Pres. Hoover through Gen. Douglas MacArthur, used force to
drive them out of Washington D.C.
The “Third American Revolution” • The “Demagogues”
• FDR’s critics • They manipulated people with half-truths and scare tactics • Called for socialism and a change of government • Huey Long, Father Charles Coughlin, Dr. Francis Townsend
The “Third American Revolution” • The Progressives were another group of people who
criticized the government for not doing enough to fix the problems of society • FDR was not doing enough to redistribute the wealth
New Deal Programs • The “Bank Holiday”
• FDR closed all banks in the United States for a period of 4 days the day after he took the office of the Presidency.
• He did this to inspect the financial health of all banks • Eased the “run on the banks” • Confidence back into the banking system
• More $ in accounts than taking out • Established FDIC
New Deal Programs • In his first 100 days, FDR, with the help of his “brain trust,”
sent social program after social program to Congress for passage into law.
• These programs were referred to as FDR’s alphabet soup
social programs • because of all the acronyms!
Alphabet Soup
New Deal Programs
The First New Deal, 1933 - 1945
New Deal Programs • The Three R’s: Relief, Recovery, Reform
• aimed at combating the Great Depression • Relief: AAA, CCC, WPA, TVA, NRA, PWA • Recovery: NLRB, RFC • Reform: FDIC, FHA, SEC, SSA
• Which of these programs are still around today? (Can you name the six?)
Alphabet Soup
The Second New Deal The Second Hundred Days • After his first 100 days in office, stronger focus on Social
Reforms • Citizens & politicians began to complain that FDR was
“socializing” the United States too much and starting to stray from the values of hard work & initiative the country was built on. • New programs failed to bring about significant economic improvement
WPA
The Second New Deal • Court Packing (1937) - FDR’s BIGGEST COMPLAINT
• As many of his programs came under fire, they started being challenged @ Sup. Ct.
• When the Sup. Ct. refused to uphold the Constitutionality of some of his programs, he threatened the 9 member Supreme Court w/ adding more justices
• He wanted to ‘pack’ the U.S. Sup. Ct. w/ justices favoring his programs
NLRB & The Wagner Act • NLRB called The Wagner Act (1935)
• collective bargaining & closed shops • Led to a rise in unions and numbers of strikes • Outlawed spying on union activities & blacklisting (practice in which employers agreed not to hire union leaders)
• Led to sit-down strikes, which were so popular they were outlawed by the Sup. Ct.
Social Security Act (1935) • Social Security system
• Provide financial security (regular payments) to those who could not support themselves • Old-age pensions & survivors’ benefits
• early as 62 or full at 65 • Unemployment Insurance
• > 8 employees • Aid for dependent children, the blind, & the disabled
The Election of 1936 • FDR (D) vs. Alf Landon (R) KS Gov’nr • 523 electoral votes to 8 electoral votes
• every state except ME & VT • wins by a landslide • This victory showed support for FDR and all of his “New
Deal” programs
The Recession of 1937 • All of these social programs cost lots and lots of money
(Nothing comes free)
• led to a rise in national debt (spending more than it was bringing in)
• Our debt today (the debt clock) • Reduced consumer spending (ills of a consumer society)
Social Consequences of The New Deal • Minority groups lost jobs to whites • Women who worked were criticized • The “Depression Generation” and credit buying • Role of the First Lady in government • Legacy of the New Deal-restored hope • Role of Movies in society • Any effects of this legislation today?
2011 Federal Budget Expenditures
1
2
3
4
1
2
5
1
2
6
1
2
7
8
9
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68
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71
72
73
74
1/30/13
9
The Roaring 20’s, The Great Depression, & The New Deal Presented by Mr. Anderson, M.Ed., J.D.
The Roaring 20’s • The Election of 1920
• wins by a landslide (60% of the popular vote vs. 34% for James Cox)
• Advocated social stability and big business (people trusted him)
• weary of sacrifice at home; healing was needed for normalcy
The “Return to Normalcy” • Laissez-faire government
• “The business of the American people is… business” – Calvin Coolidge)
The “Return to Normalcy” • Isolationism - The foreign policy that Republican presidents in
the 1920’s will follow • stay out of foreign affairs • avoid political and economic alliances
• America becomes isolationist for several reasons: • Because of the Treaty of Versailles • Because of the League of Nations, which called for disarmament
• to support big business
Political Scandal Under Harding • Harding’s Secretary of the Interior Albert B. Fall sold oil
drilling rights in Elk Hills, CA and Teapot Dome, Wyoming for $300,000
• Edward Doheny - owned oil fields in CA
• Frank Seaver - worked for Doheny
• Harry Sinclair - owned oil fields in WY
The Growth of the American Economy in the 1920’s • Recession after WWI
• economy slowed down • returning soldiers needed work (supply and demand) • COL doubled
• labor strikes for better working conditions and higher wages • Boston police strike
• puts Coolidge on the scene • led to riots, his successful handling will make him popular
The “Farm Problem” • No Roaring 20’s for the farmers
• after wartime demand ended, wheat and cotton prices plummeted
• During the good times, they had bought new machinery with loans
• incurred massive debt
Henry Ford and the Model T • Revolutionized the auto industry with the assembly line
(economies of scale) • Externalities -
• gas stations • motels • roads • part stores • tire companies
Installment Buying • To this point everything was done in cash! • Jumpstarts the Consumer economy and consumer culture we
have today! • with credit, demand grew • pushed up prices, but supply kept up • led to the construction of power plants • higher standard of living, more leisure time and… • chain stores
Those Who Did Not Benefit • Farmers
• Supply & demand during WWI & after WWI • Farmers should have cut supply after WWI
• Unskilled Labor & Migrant Workers • Remained poor • Hit the hardest of all
Warm-up #1: Review Notes • Briefly describe president Warren Harding’s stance on:
• foreign policy • treatment towards big business
• Briefly define installment buying.
• Explain the economic effect of the advent of installment buying.
The “Red Scare” • The “Red Scare” was in response to the Russian revolution
of 1917. • In desiring “normalcy,” American citizens sought to destroy
anybody or anything perceived to be “un-American.”
Nativism • The idea of returning America to its original state
• Return of the KKK • targeted Jews, African Americans, Immigrants
Nativism • Anti-immigration laws passed in the early 1920’s put quotas
or limits on the numbers of people that could come from certain countries (national origins act of 1924)
• no Asians • very few Pols, Italians, and Russians
These people represented competition in the labor market
Terrorist Plots • Anarchists target big names in society:
• Palmer (politician) • Rockefeller (business entrepreneur) • Oliver Wendell Holmes (Supreme Court Chief Justice)
• This is why Americans search for a return to the “America of old”
The Palmer Raids • As the Red Scare heightened, the government looked for
those who represented a “clear and present” danger to US national security
• Led by A. Mitchell Palmer, head of the Justice Department (attorney general)
• justice department is part of what branch?
A. Mitchell Palmer • created the FBI
• J. Edgar Hoover • Conducted two raids in 1919 and 1920
• arrests 6000 immigrants, aliens, labor leaders • tried to deport them all • 550 deported, 4000 released
Response to the Palmer Raids • Applause at first
• public outcry after the facts come out: • bogus search warrants (4th) • evidence falsified, right against self-incrimination (5th)
• practiced law after losing his nomination bid in the 1920 election
Social Issues of the 1920’s • Flappers & Vamps!
• wished to break with the past (mothers) • shorter hair, shorter skirts, more make-up • would go out alone, smoke/drink • clubs (Charleston) • The 19th Amendment (1920)
The Rise of American Culture • Mass Media: Billboards, radio, movies
• promoted the creation of a national culture
Radio • Affordable
• NBC(1925) & CBS (1929)
• George Burns, Groucho Marx, Bing Crosby, Jack Benny • FDR’s “fireside chats”
Sports • Football, Baseball & Boxing
• Lou Gehrig/Babe Ruth
Movies • The Jazz Singer
• Mickey Mouse
• For the first time, sound was put to the movements on the screen
Hero Worship • People longed for old-fashioned virtues
• people got fed up with immoral behavior • Charles Lindbergh, Amelia Earhart, Babe Ruth, Jack
Dempsey
Warm-up #2: Review Notes • Explain what the rise of films, radio broadcasting, and the
news media helped bring about in the United States at the beginning of the 1920’s?
The Scopes Monkey Trial • John Scopes – science teacher in TN • taught evolution in Biology class, which was banned because
it contradicted the teachings on the Bible • Legal Issue:
• the right to teach evolution in public schools
The Scopes Monkey Trial • Prosecution: State of Tennessee (William Jennings Bryan)
• Called themselves fundamentalists • believed in a literal interpretation of the Bible
• Defense: John Scopes (Clarence Darrow of the ACLU) • believed in Evolution and the theories of Charles Darwin • taught them purposefully
Tennessee v. John Scopes (1925)
The Scopes Monkey Trial • Scopes was found guilty of teaching evolution
• Fundamentalists lost serious momentum as a result of this decision
• Conviction was later overturned (did little to change interpretations)
Prohibition (18th Amendment) • Passed in 1919, this Amendment would lead to the rise of
organized crime • politicians in the 1920’s had to disclose if they were in favor
or a “wet” or “dry” society • Bootleggers, speakeasies popped up everywhere • In 1933, the 21st Amendment officially ended the prohibition
experiment
Prohibition • Enforced by the Volstead Act • Vetoed by Wilson (D) and overridden by each house of
Congress (R) by a 2/3 vote
Murder – Cal. P.C. §187
The Jazz Age • A truly American invention
• Louis Armstrong • Duke Ellington
• Started in the deep south and migrated north to Harlem during the Great Migration • blues • gospel
The Harlem Renaissance • The awakening of African American literary and musical
talent • James Weldon Johnson and Zora Neale Hurston, as well as Langston hughes embodied the Harlem Renaissance
Warm-up #3: Review Notes • List Amendments 18-27!!!!
The Election of 1928 • Al Smith (D):
• From NY where he was a four-time governor • pro-immigrant • Catholic
The Election of 1928 • Herbert Hoover (R):
• Sec. of Commerce under Harding and Coolidge • self-made millionaire • good times would get better • wins easily
Causes of the Stock Market Crash • It seemed that everybody was investing in the stock market • people bought stock on margin (get rich quick attitude) • made for a lot of rich Americans on paper.
Stock Market Principles • Stock- ownership of a company • point is to invest for the long-term • buy low and sell high • many factors that determine worth of stock
Stock Market Ascent and descent • The upward climb of the stock market benefitted the rich • created a “bubble” • in late October 1929, the Dow Jones Industrial Average
began to drop • people started to sell their stock
Bank Failures • After the crash, thousands of banks will have to close, not
being able to pay depositors back • No safety net (today federal insurance) • People lost confidence in their banks
The President’s Response • As the economy collapsed, people began to blame President
Hoover • “Hoovervilles” will spring up across the country, one effect of
wage cuts and unemployment
The President’s Response • As the economy continued to decline, Hoover believed the
gov’t. should let businesses voluntarily control themselves • no stimulus packages here! • Republican idea
The President’s Response • As a result of this inaction, the view of economics and the
government’s role in economics would change forever • the gov’t. is much more pro-active today in business affairs
Causes of the Great Depression • Overexpansion of Agriculture -
• WWI and increased demand • as war ended, farmers kept supply high • as demand decreased, farmers increased supply
Causes of the Great Depression • Overexpansion of industry -
• Industry produced more goods than most consumers could afford or want
• S>D as a result, reduced prices, reduced wages, stalled the economy
Causes of the Great Depression • Technological unemployment -
• Companies began to replace people with machines • work could be done quicker, more efficiently, and at a lower cost to the producer.
Causes of the Great Depression • Overexpansion of credit -
• credit was too easy in the 1920’s • people overextended themselves • as the economy turned south, loans couldn’t be repaid • FED tightened credit
• wrong move
Causes of the Great Depression • “Overspeculation” –
• bought stock w/ borrowed money & then pledged those stocks as collateral to buy more stocks
• Bought stock in companies with poor financial health
• Bought stock on optimism instead of real value
The Government’s Response • Voluntary steps by government and business
• Hoover advocated “confidence” • called big business leaders to white house
• promised to keep wages up • spent more on public buildings roads
The Government’s Response • Agricultural Marketing Act (June 1929)
• Federal Farm Board • 1st gov’t. attempt to stabilize crop prices • proved to be a failure • lost over $150,000,000.00
The Reconstruction Finance Corporation • Reflected theory of trickle down economics • Helped economy as a whole through loans • Government extended credit to banks who would then extend
credit to individuals in society
Warm-up #4: Review Notes • Who did American’s blame for the decline of the American
economy into the depression? • what were the shantytowns many American moved into called?
• “Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.” Charles Dickens David Copperfield
The Election of 1932 • Herbert Hoover (R) • FDR (D)
• People liked his optimism and his willingness to experiment with the economy
• Major Issues facing voters: The Depression and Prohibition
The “New Deal” • FDR won easily in 1932 by promising Americans a “New
Deal” • He was a capitalist but laissez-faire government was dead at this point
• Election marked a change in how Americans viewed the role and responsibilities of the national government
• “New Deal” was the most massive program of social legislation (laws) ever!
• Creation of several major federal agencies
The “Third American Revolution” • The Bonus Army Marchers – 20,000 jobless WWI Vets &
families set up camp in Washington D.C. • Wanted immediate payment of pension bonus (to be pd. in
‘45) • Pres. Hoover through Gen. Douglas MacArthur, used force to
drive them out of Washington D.C.
The “Third American Revolution” • The “Demagogues”
• FDR’s critics • They manipulated people with half-truths and scare tactics • Called for socialism and a change of government • Huey Long, Father Charles Coughlin, Dr. Francis Townsend
The “Third American Revolution” • The Progressives were another group of people who
criticized the government for not doing enough to fix the problems of society • FDR was not doing enough to redistribute the wealth
New Deal Programs • The “Bank Holiday”
• FDR closed all banks in the United States for a period of 4 days the day after he took the office of the Presidency.
• He did this to inspect the financial health of all banks • Eased the “run on the banks” • Confidence back into the banking system
• More $ in accounts than taking out • Established FDIC
New Deal Programs • In his first 100 days, FDR, with the help of his “brain trust,”
sent social program after social program to Congress for passage into law.
• These programs were referred to as FDR’s alphabet soup
social programs • because of all the acronyms!
Alphabet Soup
New Deal Programs
The First New Deal, 1933 - 1945
New Deal Programs • The Three R’s: Relief, Recovery, Reform
• aimed at combating the Great Depression • Relief: AAA, CCC, WPA, TVA, NRA, PWA • Recovery: NLRB, RFC • Reform: FDIC, FHA, SEC, SSA
• Which of these programs are still around today? (Can you name the six?)
Alphabet Soup
The Second New Deal The Second Hundred Days • After his first 100 days in office, stronger focus on Social
Reforms • Citizens & politicians began to complain that FDR was
“socializing” the United States too much and starting to stray from the values of hard work & initiative the country was built on. • New programs failed to bring about significant economic improvement
WPA
The Second New Deal • Court Packing (1937) - FDR’s BIGGEST COMPLAINT
• As many of his programs came under fire, they started being challenged @ Sup. Ct.
• When the Sup. Ct. refused to uphold the Constitutionality of some of his programs, he threatened the 9 member Supreme Court w/ adding more justices
• He wanted to ‘pack’ the U.S. Sup. Ct. w/ justices favoring his programs
NLRB & The Wagner Act • NLRB called The Wagner Act (1935)
• collective bargaining & closed shops • Led to a rise in unions and numbers of strikes • Outlawed spying on union activities & blacklisting (practice in which employers agreed not to hire union leaders)
• Led to sit-down strikes, which were so popular they were outlawed by the Sup. Ct.
Social Security Act (1935) • Social Security system
• Provide financial security (regular payments) to those who could not support themselves • Old-age pensions & survivors’ benefits
• early as 62 or full at 65 • Unemployment Insurance
• > 8 employees • Aid for dependent children, the blind, & the disabled
The Election of 1936 • FDR (D) vs. Alf Landon (R) KS Gov’nr • 523 electoral votes to 8 electoral votes
• every state except ME & VT • wins by a landslide • This victory showed support for FDR and all of his “New
Deal” programs
The Recession of 1937 • All of these social programs cost lots and lots of money
(Nothing comes free)
• led to a rise in national debt (spending more than it was bringing in)
• Our debt today (the debt clock) • Reduced consumer spending (ills of a consumer society)
Social Consequences of The New Deal • Minority groups lost jobs to whites • Women who worked were criticized • The “Depression Generation” and credit buying • Role of the First Lady in government • Legacy of the New Deal-restored hope • Role of Movies in society • Any effects of this legislation today?
2011 Federal Budget Expenditures
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1/30/13
10
The Roaring 20’s, The Great Depression, & The New Deal Presented by Mr. Anderson, M.Ed., J.D.
The Roaring 20’s • The Election of 1920
• wins by a landslide (60% of the popular vote vs. 34% for James Cox)
• Advocated social stability and big business (people trusted him)
• weary of sacrifice at home; healing was needed for normalcy
The “Return to Normalcy” • Laissez-faire government
• “The business of the American people is… business” – Calvin Coolidge)
The “Return to Normalcy” • Isolationism - The foreign policy that Republican presidents in
the 1920’s will follow • stay out of foreign affairs • avoid political and economic alliances
• America becomes isolationist for several reasons: • Because of the Treaty of Versailles • Because of the League of Nations, which called for disarmament
• to support big business
Political Scandal Under Harding • Harding’s Secretary of the Interior Albert B. Fall sold oil
drilling rights in Elk Hills, CA and Teapot Dome, Wyoming for $300,000
• Edward Doheny - owned oil fields in CA
• Frank Seaver - worked for Doheny
• Harry Sinclair - owned oil fields in WY
The Growth of the American Economy in the 1920’s • Recession after WWI
• economy slowed down • returning soldiers needed work (supply and demand) • COL doubled
• labor strikes for better working conditions and higher wages • Boston police strike
• puts Coolidge on the scene • led to riots, his successful handling will make him popular
The “Farm Problem” • No Roaring 20’s for the farmers
• after wartime demand ended, wheat and cotton prices plummeted
• During the good times, they had bought new machinery with loans
• incurred massive debt
Henry Ford and the Model T • Revolutionized the auto industry with the assembly line
(economies of scale) • Externalities -
• gas stations • motels • roads • part stores • tire companies
Installment Buying • To this point everything was done in cash! • Jumpstarts the Consumer economy and consumer culture we
have today! • with credit, demand grew • pushed up prices, but supply kept up • led to the construction of power plants • higher standard of living, more leisure time and… • chain stores
Those Who Did Not Benefit • Farmers
• Supply & demand during WWI & after WWI • Farmers should have cut supply after WWI
• Unskilled Labor & Migrant Workers • Remained poor • Hit the hardest of all
Warm-up #1: Review Notes • Briefly describe president Warren Harding’s stance on:
• foreign policy • treatment towards big business
• Briefly define installment buying.
• Explain the economic effect of the advent of installment buying.
The “Red Scare” • The “Red Scare” was in response to the Russian revolution
of 1917. • In desiring “normalcy,” American citizens sought to destroy
anybody or anything perceived to be “un-American.”
Nativism • The idea of returning America to its original state
• Return of the KKK • targeted Jews, African Americans, Immigrants
Nativism • Anti-immigration laws passed in the early 1920’s put quotas
or limits on the numbers of people that could come from certain countries (national origins act of 1924)
• no Asians • very few Pols, Italians, and Russians
These people represented competition in the labor market
Terrorist Plots • Anarchists target big names in society:
• Palmer (politician) • Rockefeller (business entrepreneur) • Oliver Wendell Holmes (Supreme Court Chief Justice)
• This is why Americans search for a return to the “America of old”
The Palmer Raids • As the Red Scare heightened, the government looked for
those who represented a “clear and present” danger to US national security
• Led by A. Mitchell Palmer, head of the Justice Department (attorney general)
• justice department is part of what branch?
A. Mitchell Palmer • created the FBI
• J. Edgar Hoover • Conducted two raids in 1919 and 1920
• arrests 6000 immigrants, aliens, labor leaders • tried to deport them all • 550 deported, 4000 released
Response to the Palmer Raids • Applause at first
• public outcry after the facts come out: • bogus search warrants (4th) • evidence falsified, right against self-incrimination (5th)
• practiced law after losing his nomination bid in the 1920 election
Social Issues of the 1920’s • Flappers & Vamps!
• wished to break with the past (mothers) • shorter hair, shorter skirts, more make-up • would go out alone, smoke/drink • clubs (Charleston) • The 19th Amendment (1920)
The Rise of American Culture • Mass Media: Billboards, radio, movies
• promoted the creation of a national culture
Radio • Affordable
• NBC(1925) & CBS (1929)
• George Burns, Groucho Marx, Bing Crosby, Jack Benny • FDR’s “fireside chats”
Sports • Football, Baseball & Boxing
• Lou Gehrig/Babe Ruth
Movies • The Jazz Singer
• Mickey Mouse
• For the first time, sound was put to the movements on the screen
Hero Worship • People longed for old-fashioned virtues
• people got fed up with immoral behavior • Charles Lindbergh, Amelia Earhart, Babe Ruth, Jack
Dempsey
Warm-up #2: Review Notes • Explain what the rise of films, radio broadcasting, and the
news media helped bring about in the United States at the beginning of the 1920’s?
The Scopes Monkey Trial • John Scopes – science teacher in TN • taught evolution in Biology class, which was banned because
it contradicted the teachings on the Bible • Legal Issue:
• the right to teach evolution in public schools
The Scopes Monkey Trial • Prosecution: State of Tennessee (William Jennings Bryan)
• Called themselves fundamentalists • believed in a literal interpretation of the Bible
• Defense: John Scopes (Clarence Darrow of the ACLU) • believed in Evolution and the theories of Charles Darwin • taught them purposefully
Tennessee v. John Scopes (1925)
The Scopes Monkey Trial • Scopes was found guilty of teaching evolution
• Fundamentalists lost serious momentum as a result of this decision
• Conviction was later overturned (did little to change interpretations)
Prohibition (18th Amendment) • Passed in 1919, this Amendment would lead to the rise of
organized crime • politicians in the 1920’s had to disclose if they were in favor
or a “wet” or “dry” society • Bootleggers, speakeasies popped up everywhere • In 1933, the 21st Amendment officially ended the prohibition
experiment
Prohibition • Enforced by the Volstead Act • Vetoed by Wilson (D) and overridden by each house of
Congress (R) by a 2/3 vote
Murder – Cal. P.C. §187
The Jazz Age • A truly American invention
• Louis Armstrong • Duke Ellington
• Started in the deep south and migrated north to Harlem during the Great Migration • blues • gospel
The Harlem Renaissance • The awakening of African American literary and musical
talent • James Weldon Johnson and Zora Neale Hurston, as well as Langston hughes embodied the Harlem Renaissance
Warm-up #3: Review Notes • List Amendments 18-27!!!!
The Election of 1928 • Al Smith (D):
• From NY where he was a four-time governor • pro-immigrant • Catholic
The Election of 1928 • Herbert Hoover (R):
• Sec. of Commerce under Harding and Coolidge • self-made millionaire • good times would get better • wins easily
Causes of the Stock Market Crash • It seemed that everybody was investing in the stock market • people bought stock on margin (get rich quick attitude) • made for a lot of rich Americans on paper.
Stock Market Principles • Stock- ownership of a company • point is to invest for the long-term • buy low and sell high • many factors that determine worth of stock
Stock Market Ascent and descent • The upward climb of the stock market benefitted the rich • created a “bubble” • in late October 1929, the Dow Jones Industrial Average
began to drop • people started to sell their stock
Bank Failures • After the crash, thousands of banks will have to close, not
being able to pay depositors back • No safety net (today federal insurance) • People lost confidence in their banks
The President’s Response • As the economy collapsed, people began to blame President
Hoover • “Hoovervilles” will spring up across the country, one effect of
wage cuts and unemployment
The President’s Response • As the economy continued to decline, Hoover believed the
gov’t. should let businesses voluntarily control themselves • no stimulus packages here! • Republican idea
The President’s Response • As a result of this inaction, the view of economics and the
government’s role in economics would change forever • the gov’t. is much more pro-active today in business affairs
Causes of the Great Depression • Overexpansion of Agriculture -
• WWI and increased demand • as war ended, farmers kept supply high • as demand decreased, farmers increased supply
Causes of the Great Depression • Overexpansion of industry -
• Industry produced more goods than most consumers could afford or want
• S>D as a result, reduced prices, reduced wages, stalled the economy
Causes of the Great Depression • Technological unemployment -
• Companies began to replace people with machines • work could be done quicker, more efficiently, and at a lower cost to the producer.
Causes of the Great Depression • Overexpansion of credit -
• credit was too easy in the 1920’s • people overextended themselves • as the economy turned south, loans couldn’t be repaid • FED tightened credit
• wrong move
Causes of the Great Depression • “Overspeculation” –
• bought stock w/ borrowed money & then pledged those stocks as collateral to buy more stocks
• Bought stock in companies with poor financial health
• Bought stock on optimism instead of real value
The Government’s Response • Voluntary steps by government and business
• Hoover advocated “confidence” • called big business leaders to white house
• promised to keep wages up • spent more on public buildings roads
The Government’s Response • Agricultural Marketing Act (June 1929)
• Federal Farm Board • 1st gov’t. attempt to stabilize crop prices • proved to be a failure • lost over $150,000,000.00
The Reconstruction Finance Corporation • Reflected theory of trickle down economics • Helped economy as a whole through loans • Government extended credit to banks who would then extend
credit to individuals in society
Warm-up #4: Review Notes • Who did American’s blame for the decline of the American
economy into the depression? • what were the shantytowns many American moved into called?
• “Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.” Charles Dickens David Copperfield
The Election of 1932 • Herbert Hoover (R) • FDR (D)
• People liked his optimism and his willingness to experiment with the economy
• Major Issues facing voters: The Depression and Prohibition
The “New Deal” • FDR won easily in 1932 by promising Americans a “New
Deal” • He was a capitalist but laissez-faire government was dead at this point
• Election marked a change in how Americans viewed the role and responsibilities of the national government
• “New Deal” was the most massive program of social legislation (laws) ever!
• Creation of several major federal agencies
The “Third American Revolution” • The Bonus Army Marchers – 20,000 jobless WWI Vets &
families set up camp in Washington D.C. • Wanted immediate payment of pension bonus (to be pd. in
‘45) • Pres. Hoover through Gen. Douglas MacArthur, used force to
drive them out of Washington D.C.
The “Third American Revolution” • The “Demagogues”
• FDR’s critics • They manipulated people with half-truths and scare tactics • Called for socialism and a change of government • Huey Long, Father Charles Coughlin, Dr. Francis Townsend
The “Third American Revolution” • The Progressives were another group of people who
criticized the government for not doing enough to fix the problems of society • FDR was not doing enough to redistribute the wealth
New Deal Programs • The “Bank Holiday”
• FDR closed all banks in the United States for a period of 4 days the day after he took the office of the Presidency.
• He did this to inspect the financial health of all banks • Eased the “run on the banks” • Confidence back into the banking system
• More $ in accounts than taking out • Established FDIC
New Deal Programs • In his first 100 days, FDR, with the help of his “brain trust,”
sent social program after social program to Congress for passage into law.
• These programs were referred to as FDR’s alphabet soup
social programs • because of all the acronyms!
Alphabet Soup
New Deal Programs
The First New Deal, 1933 - 1945
New Deal Programs • The Three R’s: Relief, Recovery, Reform
• aimed at combating the Great Depression • Relief: AAA, CCC, WPA, TVA, NRA, PWA • Recovery: NLRB, RFC • Reform: FDIC, FHA, SEC, SSA
• Which of these programs are still around today? (Can you name the six?)
Alphabet Soup
The Second New Deal The Second Hundred Days • After his first 100 days in office, stronger focus on Social
Reforms • Citizens & politicians began to complain that FDR was
“socializing” the United States too much and starting to stray from the values of hard work & initiative the country was built on. • New programs failed to bring about significant economic improvement
WPA
The Second New Deal • Court Packing (1937) - FDR’s BIGGEST COMPLAINT
• As many of his programs came under fire, they started being challenged @ Sup. Ct.
• When the Sup. Ct. refused to uphold the Constitutionality of some of his programs, he threatened the 9 member Supreme Court w/ adding more justices
• He wanted to ‘pack’ the U.S. Sup. Ct. w/ justices favoring his programs
NLRB & The Wagner Act • NLRB called The Wagner Act (1935)
• collective bargaining & closed shops • Led to a rise in unions and numbers of strikes • Outlawed spying on union activities & blacklisting (practice in which employers agreed not to hire union leaders)
• Led to sit-down strikes, which were so popular they were outlawed by the Sup. Ct.
Social Security Act (1935) • Social Security system
• Provide financial security (regular payments) to those who could not support themselves • Old-age pensions & survivors’ benefits
• early as 62 or full at 65 • Unemployment Insurance
• > 8 employees • Aid for dependent children, the blind, & the disabled
The Election of 1936 • FDR (D) vs. Alf Landon (R) KS Gov’nr • 523 electoral votes to 8 electoral votes
• every state except ME & VT • wins by a landslide • This victory showed support for FDR and all of his “New
Deal” programs
The Recession of 1937 • All of these social programs cost lots and lots of money
(Nothing comes free)
• led to a rise in national debt (spending more than it was bringing in)
• Our debt today (the debt clock) • Reduced consumer spending (ills of a consumer society)
Social Consequences of The New Deal • Minority groups lost jobs to whites • Women who worked were criticized • The “Depression Generation” and credit buying • Role of the First Lady in government • Legacy of the New Deal-restored hope • Role of Movies in society • Any effects of this legislation today?
2011 Federal Budget Expenditures
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1/30/13
11
The Roaring 20’s, The Great Depression, & The New Deal Presented by Mr. Anderson, M.Ed., J.D.
The Roaring 20’s • The Election of 1920
• wins by a landslide (60% of the popular vote vs. 34% for James Cox)
• Advocated social stability and big business (people trusted him)
• weary of sacrifice at home; healing was needed for normalcy
The “Return to Normalcy” • Laissez-faire government
• “The business of the American people is… business” – Calvin Coolidge)
The “Return to Normalcy” • Isolationism - The foreign policy that Republican presidents in
the 1920’s will follow • stay out of foreign affairs • avoid political and economic alliances
• America becomes isolationist for several reasons: • Because of the Treaty of Versailles • Because of the League of Nations, which called for disarmament
• to support big business
Political Scandal Under Harding • Harding’s Secretary of the Interior Albert B. Fall sold oil
drilling rights in Elk Hills, CA and Teapot Dome, Wyoming for $300,000
• Edward Doheny - owned oil fields in CA
• Frank Seaver - worked for Doheny
• Harry Sinclair - owned oil fields in WY
The Growth of the American Economy in the 1920’s • Recession after WWI
• economy slowed down • returning soldiers needed work (supply and demand) • COL doubled
• labor strikes for better working conditions and higher wages • Boston police strike
• puts Coolidge on the scene • led to riots, his successful handling will make him popular
The “Farm Problem” • No Roaring 20’s for the farmers
• after wartime demand ended, wheat and cotton prices plummeted
• During the good times, they had bought new machinery with loans
• incurred massive debt
Henry Ford and the Model T • Revolutionized the auto industry with the assembly line
(economies of scale) • Externalities -
• gas stations • motels • roads • part stores • tire companies
Installment Buying • To this point everything was done in cash! • Jumpstarts the Consumer economy and consumer culture we
have today! • with credit, demand grew • pushed up prices, but supply kept up • led to the construction of power plants • higher standard of living, more leisure time and… • chain stores
Those Who Did Not Benefit • Farmers
• Supply & demand during WWI & after WWI • Farmers should have cut supply after WWI
• Unskilled Labor & Migrant Workers • Remained poor • Hit the hardest of all
Warm-up #1: Review Notes • Briefly describe president Warren Harding’s stance on:
• foreign policy • treatment towards big business
• Briefly define installment buying.
• Explain the economic effect of the advent of installment buying.
The “Red Scare” • The “Red Scare” was in response to the Russian revolution
of 1917. • In desiring “normalcy,” American citizens sought to destroy
anybody or anything perceived to be “un-American.”
Nativism • The idea of returning America to its original state
• Return of the KKK • targeted Jews, African Americans, Immigrants
Nativism • Anti-immigration laws passed in the early 1920’s put quotas
or limits on the numbers of people that could come from certain countries (national origins act of 1924)
• no Asians • very few Pols, Italians, and Russians
These people represented competition in the labor market
Terrorist Plots • Anarchists target big names in society:
• Palmer (politician) • Rockefeller (business entrepreneur) • Oliver Wendell Holmes (Supreme Court Chief Justice)
• This is why Americans search for a return to the “America of old”
The Palmer Raids • As the Red Scare heightened, the government looked for
those who represented a “clear and present” danger to US national security
• Led by A. Mitchell Palmer, head of the Justice Department (attorney general)
• justice department is part of what branch?
A. Mitchell Palmer • created the FBI
• J. Edgar Hoover • Conducted two raids in 1919 and 1920
• arrests 6000 immigrants, aliens, labor leaders • tried to deport them all • 550 deported, 4000 released
Response to the Palmer Raids • Applause at first
• public outcry after the facts come out: • bogus search warrants (4th) • evidence falsified, right against self-incrimination (5th)
• practiced law after losing his nomination bid in the 1920 election
Social Issues of the 1920’s • Flappers & Vamps!
• wished to break with the past (mothers) • shorter hair, shorter skirts, more make-up • would go out alone, smoke/drink • clubs (Charleston) • The 19th Amendment (1920)
The Rise of American Culture • Mass Media: Billboards, radio, movies
• promoted the creation of a national culture
Radio • Affordable
• NBC(1925) & CBS (1929)
• George Burns, Groucho Marx, Bing Crosby, Jack Benny • FDR’s “fireside chats”
Sports • Football, Baseball & Boxing
• Lou Gehrig/Babe Ruth
Movies • The Jazz Singer
• Mickey Mouse
• For the first time, sound was put to the movements on the screen
Hero Worship • People longed for old-fashioned virtues
• people got fed up with immoral behavior • Charles Lindbergh, Amelia Earhart, Babe Ruth, Jack
Dempsey
Warm-up #2: Review Notes • Explain what the rise of films, radio broadcasting, and the
news media helped bring about in the United States at the beginning of the 1920’s?
The Scopes Monkey Trial • John Scopes – science teacher in TN • taught evolution in Biology class, which was banned because
it contradicted the teachings on the Bible • Legal Issue:
• the right to teach evolution in public schools
The Scopes Monkey Trial • Prosecution: State of Tennessee (William Jennings Bryan)
• Called themselves fundamentalists • believed in a literal interpretation of the Bible
• Defense: John Scopes (Clarence Darrow of the ACLU) • believed in Evolution and the theories of Charles Darwin • taught them purposefully
Tennessee v. John Scopes (1925)
The Scopes Monkey Trial • Scopes was found guilty of teaching evolution
• Fundamentalists lost serious momentum as a result of this decision
• Conviction was later overturned (did little to change interpretations)
Prohibition (18th Amendment) • Passed in 1919, this Amendment would lead to the rise of
organized crime • politicians in the 1920’s had to disclose if they were in favor
or a “wet” or “dry” society • Bootleggers, speakeasies popped up everywhere • In 1933, the 21st Amendment officially ended the prohibition
experiment
Prohibition • Enforced by the Volstead Act • Vetoed by Wilson (D) and overridden by each house of
Congress (R) by a 2/3 vote
Murder – Cal. P.C. §187
The Jazz Age • A truly American invention
• Louis Armstrong • Duke Ellington
• Started in the deep south and migrated north to Harlem during the Great Migration • blues • gospel
The Harlem Renaissance • The awakening of African American literary and musical
talent • James Weldon Johnson and Zora Neale Hurston, as well as Langston hughes embodied the Harlem Renaissance
Warm-up #3: Review Notes • List Amendments 18-27!!!!
The Election of 1928 • Al Smith (D):
• From NY where he was a four-time governor • pro-immigrant • Catholic
The Election of 1928 • Herbert Hoover (R):
• Sec. of Commerce under Harding and Coolidge • self-made millionaire • good times would get better • wins easily
Causes of the Stock Market Crash • It seemed that everybody was investing in the stock market • people bought stock on margin (get rich quick attitude) • made for a lot of rich Americans on paper.
Stock Market Principles • Stock- ownership of a company • point is to invest for the long-term • buy low and sell high • many factors that determine worth of stock
Stock Market Ascent and descent • The upward climb of the stock market benefitted the rich • created a “bubble” • in late October 1929, the Dow Jones Industrial Average
began to drop • people started to sell their stock
Bank Failures • After the crash, thousands of banks will have to close, not
being able to pay depositors back • No safety net (today federal insurance) • People lost confidence in their banks
The President’s Response • As the economy collapsed, people began to blame President
Hoover • “Hoovervilles” will spring up across the country, one effect of
wage cuts and unemployment
The President’s Response • As the economy continued to decline, Hoover believed the
gov’t. should let businesses voluntarily control themselves • no stimulus packages here! • Republican idea
The President’s Response • As a result of this inaction, the view of economics and the
government’s role in economics would change forever • the gov’t. is much more pro-active today in business affairs
Causes of the Great Depression • Overexpansion of Agriculture -
• WWI and increased demand • as war ended, farmers kept supply high • as demand decreased, farmers increased supply
Causes of the Great Depression • Overexpansion of industry -
• Industry produced more goods than most consumers could afford or want
• S>D as a result, reduced prices, reduced wages, stalled the economy
Causes of the Great Depression • Technological unemployment -
• Companies began to replace people with machines • work could be done quicker, more efficiently, and at a lower cost to the producer.
Causes of the Great Depression • Overexpansion of credit -
• credit was too easy in the 1920’s • people overextended themselves • as the economy turned south, loans couldn’t be repaid • FED tightened credit
• wrong move
Causes of the Great Depression • “Overspeculation” –
• bought stock w/ borrowed money & then pledged those stocks as collateral to buy more stocks
• Bought stock in companies with poor financial health
• Bought stock on optimism instead of real value
The Government’s Response • Voluntary steps by government and business
• Hoover advocated “confidence” • called big business leaders to white house
• promised to keep wages up • spent more on public buildings roads
The Government’s Response • Agricultural Marketing Act (June 1929)
• Federal Farm Board • 1st gov’t. attempt to stabilize crop prices • proved to be a failure • lost over $150,000,000.00
The Reconstruction Finance Corporation • Reflected theory of trickle down economics • Helped economy as a whole through loans • Government extended credit to banks who would then extend
credit to individuals in society
Warm-up #4: Review Notes • Who did American’s blame for the decline of the American
economy into the depression? • what were the shantytowns many American moved into called?
• “Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.” Charles Dickens David Copperfield
The Election of 1932 • Herbert Hoover (R) • FDR (D)
• People liked his optimism and his willingness to experiment with the economy
• Major Issues facing voters: The Depression and Prohibition
The “New Deal” • FDR won easily in 1932 by promising Americans a “New
Deal” • He was a capitalist but laissez-faire government was dead at this point
• Election marked a change in how Americans viewed the role and responsibilities of the national government
• “New Deal” was the most massive program of social legislation (laws) ever!
• Creation of several major federal agencies
The “Third American Revolution” • The Bonus Army Marchers – 20,000 jobless WWI Vets &
families set up camp in Washington D.C. • Wanted immediate payment of pension bonus (to be pd. in
‘45) • Pres. Hoover through Gen. Douglas MacArthur, used force to
drive them out of Washington D.C.
The “Third American Revolution” • The “Demagogues”
• FDR’s critics • They manipulated people with half-truths and scare tactics • Called for socialism and a change of government • Huey Long, Father Charles Coughlin, Dr. Francis Townsend
The “Third American Revolution” • The Progressives were another group of people who
criticized the government for not doing enough to fix the problems of society • FDR was not doing enough to redistribute the wealth
New Deal Programs • The “Bank Holiday”
• FDR closed all banks in the United States for a period of 4 days the day after he took the office of the Presidency.
• He did this to inspect the financial health of all banks • Eased the “run on the banks” • Confidence back into the banking system
• More $ in accounts than taking out • Established FDIC
New Deal Programs • In his first 100 days, FDR, with the help of his “brain trust,”
sent social program after social program to Congress for passage into law.
• These programs were referred to as FDR’s alphabet soup
social programs • because of all the acronyms!
Alphabet Soup
New Deal Programs
The First New Deal, 1933 - 1945
New Deal Programs • The Three R’s: Relief, Recovery, Reform
• aimed at combating the Great Depression • Relief: AAA, CCC, WPA, TVA, NRA, PWA • Recovery: NLRB, RFC • Reform: FDIC, FHA, SEC, SSA
• Which of these programs are still around today? (Can you name the six?)
Alphabet Soup
The Second New Deal The Second Hundred Days • After his first 100 days in office, stronger focus on Social
Reforms • Citizens & politicians began to complain that FDR was
“socializing” the United States too much and starting to stray from the values of hard work & initiative the country was built on. • New programs failed to bring about significant economic improvement
WPA
The Second New Deal • Court Packing (1937) - FDR’s BIGGEST COMPLAINT
• As many of his programs came under fire, they started being challenged @ Sup. Ct.
• When the Sup. Ct. refused to uphold the Constitutionality of some of his programs, he threatened the 9 member Supreme Court w/ adding more justices
• He wanted to ‘pack’ the U.S. Sup. Ct. w/ justices favoring his programs
NLRB & The Wagner Act • NLRB called The Wagner Act (1935)
• collective bargaining & closed shops • Led to a rise in unions and numbers of strikes • Outlawed spying on union activities & blacklisting (practice in which employers agreed not to hire union leaders)
• Led to sit-down strikes, which were so popular they were outlawed by the Sup. Ct.
Social Security Act (1935) • Social Security system
• Provide financial security (regular payments) to those who could not support themselves • Old-age pensions & survivors’ benefits
• early as 62 or full at 65 • Unemployment Insurance
• > 8 employees • Aid for dependent children, the blind, & the disabled
The Election of 1936 • FDR (D) vs. Alf Landon (R) KS Gov’nr • 523 electoral votes to 8 electoral votes
• every state except ME & VT • wins by a landslide • This victory showed support for FDR and all of his “New
Deal” programs
The Recession of 1937 • All of these social programs cost lots and lots of money
(Nothing comes free)
• led to a rise in national debt (spending more than it was bringing in)
• Our debt today (the debt clock) • Reduced consumer spending (ills of a consumer society)
Social Consequences of The New Deal • Minority groups lost jobs to whites • Women who worked were criticized • The “Depression Generation” and credit buying • Role of the First Lady in government • Legacy of the New Deal-restored hope • Role of Movies in society • Any effects of this legislation today?
2011 Federal Budget Expenditures
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1/30/13
12
The Roaring 20’s, The Great Depression, & The New Deal Presented by Mr. Anderson, M.Ed., J.D.
The Roaring 20’s • The Election of 1920
• wins by a landslide (60% of the popular vote vs. 34% for James Cox)
• Advocated social stability and big business (people trusted him)
• weary of sacrifice at home; healing was needed for normalcy
The “Return to Normalcy” • Laissez-faire government
• “The business of the American people is… business” – Calvin Coolidge)
The “Return to Normalcy” • Isolationism - The foreign policy that Republican presidents in
the 1920’s will follow • stay out of foreign affairs • avoid political and economic alliances
• America becomes isolationist for several reasons: • Because of the Treaty of Versailles • Because of the League of Nations, which called for disarmament
• to support big business
Political Scandal Under Harding • Harding’s Secretary of the Interior Albert B. Fall sold oil
drilling rights in Elk Hills, CA and Teapot Dome, Wyoming for $300,000
• Edward Doheny - owned oil fields in CA
• Frank Seaver - worked for Doheny
• Harry Sinclair - owned oil fields in WY
The Growth of the American Economy in the 1920’s • Recession after WWI
• economy slowed down • returning soldiers needed work (supply and demand) • COL doubled
• labor strikes for better working conditions and higher wages • Boston police strike
• puts Coolidge on the scene • led to riots, his successful handling will make him popular
The “Farm Problem” • No Roaring 20’s for the farmers
• after wartime demand ended, wheat and cotton prices plummeted
• During the good times, they had bought new machinery with loans
• incurred massive debt
Henry Ford and the Model T • Revolutionized the auto industry with the assembly line
(economies of scale) • Externalities -
• gas stations • motels • roads • part stores • tire companies
Installment Buying • To this point everything was done in cash! • Jumpstarts the Consumer economy and consumer culture we
have today! • with credit, demand grew • pushed up prices, but supply kept up • led to the construction of power plants • higher standard of living, more leisure time and… • chain stores
Those Who Did Not Benefit • Farmers
• Supply & demand during WWI & after WWI • Farmers should have cut supply after WWI
• Unskilled Labor & Migrant Workers • Remained poor • Hit the hardest of all
Warm-up #1: Review Notes • Briefly describe president Warren Harding’s stance on:
• foreign policy • treatment towards big business
• Briefly define installment buying.
• Explain the economic effect of the advent of installment buying.
The “Red Scare” • The “Red Scare” was in response to the Russian revolution
of 1917. • In desiring “normalcy,” American citizens sought to destroy
anybody or anything perceived to be “un-American.”
Nativism • The idea of returning America to its original state
• Return of the KKK • targeted Jews, African Americans, Immigrants
Nativism • Anti-immigration laws passed in the early 1920’s put quotas
or limits on the numbers of people that could come from certain countries (national origins act of 1924)
• no Asians • very few Pols, Italians, and Russians
These people represented competition in the labor market
Terrorist Plots • Anarchists target big names in society:
• Palmer (politician) • Rockefeller (business entrepreneur) • Oliver Wendell Holmes (Supreme Court Chief Justice)
• This is why Americans search for a return to the “America of old”
The Palmer Raids • As the Red Scare heightened, the government looked for
those who represented a “clear and present” danger to US national security
• Led by A. Mitchell Palmer, head of the Justice Department (attorney general)
• justice department is part of what branch?
A. Mitchell Palmer • created the FBI
• J. Edgar Hoover • Conducted two raids in 1919 and 1920
• arrests 6000 immigrants, aliens, labor leaders • tried to deport them all • 550 deported, 4000 released
Response to the Palmer Raids • Applause at first
• public outcry after the facts come out: • bogus search warrants (4th) • evidence falsified, right against self-incrimination (5th)
• practiced law after losing his nomination bid in the 1920 election
Social Issues of the 1920’s • Flappers & Vamps!
• wished to break with the past (mothers) • shorter hair, shorter skirts, more make-up • would go out alone, smoke/drink • clubs (Charleston) • The 19th Amendment (1920)
The Rise of American Culture • Mass Media: Billboards, radio, movies
• promoted the creation of a national culture
Radio • Affordable
• NBC(1925) & CBS (1929)
• George Burns, Groucho Marx, Bing Crosby, Jack Benny • FDR’s “fireside chats”
Sports • Football, Baseball & Boxing
• Lou Gehrig/Babe Ruth
Movies • The Jazz Singer
• Mickey Mouse
• For the first time, sound was put to the movements on the screen
Hero Worship • People longed for old-fashioned virtues
• people got fed up with immoral behavior • Charles Lindbergh, Amelia Earhart, Babe Ruth, Jack
Dempsey
Warm-up #2: Review Notes • Explain what the rise of films, radio broadcasting, and the
news media helped bring about in the United States at the beginning of the 1920’s?
The Scopes Monkey Trial • John Scopes – science teacher in TN • taught evolution in Biology class, which was banned because
it contradicted the teachings on the Bible • Legal Issue:
• the right to teach evolution in public schools
The Scopes Monkey Trial • Prosecution: State of Tennessee (William Jennings Bryan)
• Called themselves fundamentalists • believed in a literal interpretation of the Bible
• Defense: John Scopes (Clarence Darrow of the ACLU) • believed in Evolution and the theories of Charles Darwin • taught them purposefully
Tennessee v. John Scopes (1925)
The Scopes Monkey Trial • Scopes was found guilty of teaching evolution
• Fundamentalists lost serious momentum as a result of this decision
• Conviction was later overturned (did little to change interpretations)
Prohibition (18th Amendment) • Passed in 1919, this Amendment would lead to the rise of
organized crime • politicians in the 1920’s had to disclose if they were in favor
or a “wet” or “dry” society • Bootleggers, speakeasies popped up everywhere • In 1933, the 21st Amendment officially ended the prohibition
experiment
Prohibition • Enforced by the Volstead Act • Vetoed by Wilson (D) and overridden by each house of
Congress (R) by a 2/3 vote
Murder – Cal. P.C. §187
The Jazz Age • A truly American invention
• Louis Armstrong • Duke Ellington
• Started in the deep south and migrated north to Harlem during the Great Migration • blues • gospel
The Harlem Renaissance • The awakening of African American literary and musical
talent • James Weldon Johnson and Zora Neale Hurston, as well as Langston hughes embodied the Harlem Renaissance
Warm-up #3: Review Notes • List Amendments 18-27!!!!
The Election of 1928 • Al Smith (D):
• From NY where he was a four-time governor • pro-immigrant • Catholic
The Election of 1928 • Herbert Hoover (R):
• Sec. of Commerce under Harding and Coolidge • self-made millionaire • good times would get better • wins easily
Causes of the Stock Market Crash • It seemed that everybody was investing in the stock market • people bought stock on margin (get rich quick attitude) • made for a lot of rich Americans on paper.
Stock Market Principles • Stock- ownership of a company • point is to invest for the long-term • buy low and sell high • many factors that determine worth of stock
Stock Market Ascent and descent • The upward climb of the stock market benefitted the rich • created a “bubble” • in late October 1929, the Dow Jones Industrial Average
began to drop • people started to sell their stock
Bank Failures • After the crash, thousands of banks will have to close, not
being able to pay depositors back • No safety net (today federal insurance) • People lost confidence in their banks
The President’s Response • As the economy collapsed, people began to blame President
Hoover • “Hoovervilles” will spring up across the country, one effect of
wage cuts and unemployment
The President’s Response • As the economy continued to decline, Hoover believed the
gov’t. should let businesses voluntarily control themselves • no stimulus packages here! • Republican idea
The President’s Response • As a result of this inaction, the view of economics and the
government’s role in economics would change forever • the gov’t. is much more pro-active today in business affairs
Causes of the Great Depression • Overexpansion of Agriculture -
• WWI and increased demand • as war ended, farmers kept supply high • as demand decreased, farmers increased supply
Causes of the Great Depression • Overexpansion of industry -
• Industry produced more goods than most consumers could afford or want
• S>D as a result, reduced prices, reduced wages, stalled the economy
Causes of the Great Depression • Technological unemployment -
• Companies began to replace people with machines • work could be done quicker, more efficiently, and at a lower cost to the producer.
Causes of the Great Depression • Overexpansion of credit -
• credit was too easy in the 1920’s • people overextended themselves • as the economy turned south, loans couldn’t be repaid • FED tightened credit
• wrong move
Causes of the Great Depression • “Overspeculation” –
• bought stock w/ borrowed money & then pledged those stocks as collateral to buy more stocks
• Bought stock in companies with poor financial health
• Bought stock on optimism instead of real value
The Government’s Response • Voluntary steps by government and business
• Hoover advocated “confidence” • called big business leaders to white house
• promised to keep wages up • spent more on public buildings roads
The Government’s Response • Agricultural Marketing Act (June 1929)
• Federal Farm Board • 1st gov’t. attempt to stabilize crop prices • proved to be a failure • lost over $150,000,000.00
The Reconstruction Finance Corporation • Reflected theory of trickle down economics • Helped economy as a whole through loans • Government extended credit to banks who would then extend
credit to individuals in society
Warm-up #4: Review Notes • Who did American’s blame for the decline of the American
economy into the depression? • what were the shantytowns many American moved into called?
• “Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.” Charles Dickens David Copperfield
The Election of 1932 • Herbert Hoover (R) • FDR (D)
• People liked his optimism and his willingness to experiment with the economy
• Major Issues facing voters: The Depression and Prohibition
The “New Deal” • FDR won easily in 1932 by promising Americans a “New
Deal” • He was a capitalist but laissez-faire government was dead at this point
• Election marked a change in how Americans viewed the role and responsibilities of the national government
• “New Deal” was the most massive program of social legislation (laws) ever!
• Creation of several major federal agencies
The “Third American Revolution” • The Bonus Army Marchers – 20,000 jobless WWI Vets &
families set up camp in Washington D.C. • Wanted immediate payment of pension bonus (to be pd. in
‘45) • Pres. Hoover through Gen. Douglas MacArthur, used force to
drive them out of Washington D.C.
The “Third American Revolution” • The “Demagogues”
• FDR’s critics • They manipulated people with half-truths and scare tactics • Called for socialism and a change of government • Huey Long, Father Charles Coughlin, Dr. Francis Townsend
The “Third American Revolution” • The Progressives were another group of people who
criticized the government for not doing enough to fix the problems of society • FDR was not doing enough to redistribute the wealth
New Deal Programs • The “Bank Holiday”
• FDR closed all banks in the United States for a period of 4 days the day after he took the office of the Presidency.
• He did this to inspect the financial health of all banks • Eased the “run on the banks” • Confidence back into the banking system
• More $ in accounts than taking out • Established FDIC
New Deal Programs • In his first 100 days, FDR, with the help of his “brain trust,”
sent social program after social program to Congress for passage into law.
• These programs were referred to as FDR’s alphabet soup
social programs • because of all the acronyms!
Alphabet Soup
New Deal Programs
The First New Deal, 1933 - 1945
New Deal Programs • The Three R’s: Relief, Recovery, Reform
• aimed at combating the Great Depression • Relief: AAA, CCC, WPA, TVA, NRA, PWA • Recovery: NLRB, RFC • Reform: FDIC, FHA, SEC, SSA
• Which of these programs are still around today? (Can you name the six?)
Alphabet Soup
The Second New Deal The Second Hundred Days • After his first 100 days in office, stronger focus on Social
Reforms • Citizens & politicians began to complain that FDR was
“socializing” the United States too much and starting to stray from the values of hard work & initiative the country was built on. • New programs failed to bring about significant economic improvement
WPA
The Second New Deal • Court Packing (1937) - FDR’s BIGGEST COMPLAINT
• As many of his programs came under fire, they started being challenged @ Sup. Ct.
• When the Sup. Ct. refused to uphold the Constitutionality of some of his programs, he threatened the 9 member Supreme Court w/ adding more justices
• He wanted to ‘pack’ the U.S. Sup. Ct. w/ justices favoring his programs
NLRB & The Wagner Act • NLRB called The Wagner Act (1935)
• collective bargaining & closed shops • Led to a rise in unions and numbers of strikes • Outlawed spying on union activities & blacklisting (practice in which employers agreed not to hire union leaders)
• Led to sit-down strikes, which were so popular they were outlawed by the Sup. Ct.
Social Security Act (1935) • Social Security system
• Provide financial security (regular payments) to those who could not support themselves • Old-age pensions & survivors’ benefits
• early as 62 or full at 65 • Unemployment Insurance
• > 8 employees • Aid for dependent children, the blind, & the disabled
The Election of 1936 • FDR (D) vs. Alf Landon (R) KS Gov’nr • 523 electoral votes to 8 electoral votes
• every state except ME & VT • wins by a landslide • This victory showed support for FDR and all of his “New
Deal” programs
The Recession of 1937 • All of these social programs cost lots and lots of money
(Nothing comes free)
• led to a rise in national debt (spending more than it was bringing in)
• Our debt today (the debt clock) • Reduced consumer spending (ills of a consumer society)
Social Consequences of The New Deal • Minority groups lost jobs to whites • Women who worked were criticized • The “Depression Generation” and credit buying • Role of the First Lady in government • Legacy of the New Deal-restored hope • Role of Movies in society • Any effects of this legislation today?
2011 Federal Budget Expenditures
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1/30/13
13
The Roaring 20’s, The Great Depression, & The New Deal Presented by Mr. Anderson, M.Ed., J.D.
The Roaring 20’s • The Election of 1920
• wins by a landslide (60% of the popular vote vs. 34% for James Cox)
• Advocated social stability and big business (people trusted him)
• weary of sacrifice at home; healing was needed for normalcy
The “Return to Normalcy” • Laissez-faire government
• “The business of the American people is… business” – Calvin Coolidge)
The “Return to Normalcy” • Isolationism - The foreign policy that Republican presidents in
the 1920’s will follow • stay out of foreign affairs • avoid political and economic alliances
• America becomes isolationist for several reasons: • Because of the Treaty of Versailles • Because of the League of Nations, which called for disarmament
• to support big business
Political Scandal Under Harding • Harding’s Secretary of the Interior Albert B. Fall sold oil
drilling rights in Elk Hills, CA and Teapot Dome, Wyoming for $300,000
• Edward Doheny - owned oil fields in CA
• Frank Seaver - worked for Doheny
• Harry Sinclair - owned oil fields in WY
The Growth of the American Economy in the 1920’s • Recession after WWI
• economy slowed down • returning soldiers needed work (supply and demand) • COL doubled
• labor strikes for better working conditions and higher wages • Boston police strike
• puts Coolidge on the scene • led to riots, his successful handling will make him popular
The “Farm Problem” • No Roaring 20’s for the farmers
• after wartime demand ended, wheat and cotton prices plummeted
• During the good times, they had bought new machinery with loans
• incurred massive debt
Henry Ford and the Model T • Revolutionized the auto industry with the assembly line
(economies of scale) • Externalities -
• gas stations • motels • roads • part stores • tire companies
Installment Buying • To this point everything was done in cash! • Jumpstarts the Consumer economy and consumer culture we
have today! • with credit, demand grew • pushed up prices, but supply kept up • led to the construction of power plants • higher standard of living, more leisure time and… • chain stores
Those Who Did Not Benefit • Farmers
• Supply & demand during WWI & after WWI • Farmers should have cut supply after WWI
• Unskilled Labor & Migrant Workers • Remained poor • Hit the hardest of all
Warm-up #1: Review Notes • Briefly describe president Warren Harding’s stance on:
• foreign policy • treatment towards big business
• Briefly define installment buying.
• Explain the economic effect of the advent of installment buying.
The “Red Scare” • The “Red Scare” was in response to the Russian revolution
of 1917. • In desiring “normalcy,” American citizens sought to destroy
anybody or anything perceived to be “un-American.”
Nativism • The idea of returning America to its original state
• Return of the KKK • targeted Jews, African Americans, Immigrants
Nativism • Anti-immigration laws passed in the early 1920’s put quotas
or limits on the numbers of people that could come from certain countries (national origins act of 1924)
• no Asians • very few Pols, Italians, and Russians
These people represented competition in the labor market
Terrorist Plots • Anarchists target big names in society:
• Palmer (politician) • Rockefeller (business entrepreneur) • Oliver Wendell Holmes (Supreme Court Chief Justice)
• This is why Americans search for a return to the “America of old”
The Palmer Raids • As the Red Scare heightened, the government looked for
those who represented a “clear and present” danger to US national security
• Led by A. Mitchell Palmer, head of the Justice Department (attorney general)
• justice department is part of what branch?
A. Mitchell Palmer • created the FBI
• J. Edgar Hoover • Conducted two raids in 1919 and 1920
• arrests 6000 immigrants, aliens, labor leaders • tried to deport them all • 550 deported, 4000 released
Response to the Palmer Raids • Applause at first
• public outcry after the facts come out: • bogus search warrants (4th) • evidence falsified, right against self-incrimination (5th)
• practiced law after losing his nomination bid in the 1920 election
Social Issues of the 1920’s • Flappers & Vamps!
• wished to break with the past (mothers) • shorter hair, shorter skirts, more make-up • would go out alone, smoke/drink • clubs (Charleston) • The 19th Amendment (1920)
The Rise of American Culture • Mass Media: Billboards, radio, movies
• promoted the creation of a national culture
Radio • Affordable
• NBC(1925) & CBS (1929)
• George Burns, Groucho Marx, Bing Crosby, Jack Benny • FDR’s “fireside chats”
Sports • Football, Baseball & Boxing
• Lou Gehrig/Babe Ruth
Movies • The Jazz Singer
• Mickey Mouse
• For the first time, sound was put to the movements on the screen
Hero Worship • People longed for old-fashioned virtues
• people got fed up with immoral behavior • Charles Lindbergh, Amelia Earhart, Babe Ruth, Jack
Dempsey
Warm-up #2: Review Notes • Explain what the rise of films, radio broadcasting, and the
news media helped bring about in the United States at the beginning of the 1920’s?
The Scopes Monkey Trial • John Scopes – science teacher in TN • taught evolution in Biology class, which was banned because
it contradicted the teachings on the Bible • Legal Issue:
• the right to teach evolution in public schools
The Scopes Monkey Trial • Prosecution: State of Tennessee (William Jennings Bryan)
• Called themselves fundamentalists • believed in a literal interpretation of the Bible
• Defense: John Scopes (Clarence Darrow of the ACLU) • believed in Evolution and the theories of Charles Darwin • taught them purposefully
Tennessee v. John Scopes (1925)
The Scopes Monkey Trial • Scopes was found guilty of teaching evolution
• Fundamentalists lost serious momentum as a result of this decision
• Conviction was later overturned (did little to change interpretations)
Prohibition (18th Amendment) • Passed in 1919, this Amendment would lead to the rise of
organized crime • politicians in the 1920’s had to disclose if they were in favor
or a “wet” or “dry” society • Bootleggers, speakeasies popped up everywhere • In 1933, the 21st Amendment officially ended the prohibition
experiment
Prohibition • Enforced by the Volstead Act • Vetoed by Wilson (D) and overridden by each house of
Congress (R) by a 2/3 vote
Murder – Cal. P.C. §187
The Jazz Age • A truly American invention
• Louis Armstrong • Duke Ellington
• Started in the deep south and migrated north to Harlem during the Great Migration • blues • gospel
The Harlem Renaissance • The awakening of African American literary and musical
talent • James Weldon Johnson and Zora Neale Hurston, as well as Langston hughes embodied the Harlem Renaissance
Warm-up #3: Review Notes • List Amendments 18-27!!!!
The Election of 1928 • Al Smith (D):
• From NY where he was a four-time governor • pro-immigrant • Catholic
The Election of 1928 • Herbert Hoover (R):
• Sec. of Commerce under Harding and Coolidge • self-made millionaire • good times would get better • wins easily
Causes of the Stock Market Crash • It seemed that everybody was investing in the stock market • people bought stock on margin (get rich quick attitude) • made for a lot of rich Americans on paper.
Stock Market Principles • Stock- ownership of a company • point is to invest for the long-term • buy low and sell high • many factors that determine worth of stock
Stock Market Ascent and descent • The upward climb of the stock market benefitted the rich • created a “bubble” • in late October 1929, the Dow Jones Industrial Average
began to drop • people started to sell their stock
Bank Failures • After the crash, thousands of banks will have to close, not
being able to pay depositors back • No safety net (today federal insurance) • People lost confidence in their banks
The President’s Response • As the economy collapsed, people began to blame President
Hoover • “Hoovervilles” will spring up across the country, one effect of
wage cuts and unemployment
The President’s Response • As the economy continued to decline, Hoover believed the
gov’t. should let businesses voluntarily control themselves • no stimulus packages here! • Republican idea
The President’s Response • As a result of this inaction, the view of economics and the
government’s role in economics would change forever • the gov’t. is much more pro-active today in business affairs
Causes of the Great Depression • Overexpansion of Agriculture -
• WWI and increased demand • as war ended, farmers kept supply high • as demand decreased, farmers increased supply
Causes of the Great Depression • Overexpansion of industry -
• Industry produced more goods than most consumers could afford or want
• S>D as a result, reduced prices, reduced wages, stalled the economy
Causes of the Great Depression • Technological unemployment -
• Companies began to replace people with machines • work could be done quicker, more efficiently, and at a lower cost to the producer.
Causes of the Great Depression • Overexpansion of credit -
• credit was too easy in the 1920’s • people overextended themselves • as the economy turned south, loans couldn’t be repaid • FED tightened credit
• wrong move
Causes of the Great Depression • “Overspeculation” –
• bought stock w/ borrowed money & then pledged those stocks as collateral to buy more stocks
• Bought stock in companies with poor financial health
• Bought stock on optimism instead of real value
The Government’s Response • Voluntary steps by government and business
• Hoover advocated “confidence” • called big business leaders to white house
• promised to keep wages up • spent more on public buildings roads
The Government’s Response • Agricultural Marketing Act (June 1929)
• Federal Farm Board • 1st gov’t. attempt to stabilize crop prices • proved to be a failure • lost over $150,000,000.00
The Reconstruction Finance Corporation • Reflected theory of trickle down economics • Helped economy as a whole through loans • Government extended credit to banks who would then extend
credit to individuals in society
Warm-up #4: Review Notes • Who did American’s blame for the decline of the American
economy into the depression? • what were the shantytowns many American moved into called?
• “Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.” Charles Dickens David Copperfield
The Election of 1932 • Herbert Hoover (R) • FDR (D)
• People liked his optimism and his willingness to experiment with the economy
• Major Issues facing voters: The Depression and Prohibition
The “New Deal” • FDR won easily in 1932 by promising Americans a “New
Deal” • He was a capitalist but laissez-faire government was dead at this point
• Election marked a change in how Americans viewed the role and responsibilities of the national government
• “New Deal” was the most massive program of social legislation (laws) ever!
• Creation of several major federal agencies
The “Third American Revolution” • The Bonus Army Marchers – 20,000 jobless WWI Vets &
families set up camp in Washington D.C. • Wanted immediate payment of pension bonus (to be pd. in
‘45) • Pres. Hoover through Gen. Douglas MacArthur, used force to
drive them out of Washington D.C.
The “Third American Revolution” • The “Demagogues”
• FDR’s critics • They manipulated people with half-truths and scare tactics • Called for socialism and a change of government • Huey Long, Father Charles Coughlin, Dr. Francis Townsend
The “Third American Revolution” • The Progressives were another group of people who
criticized the government for not doing enough to fix the problems of society • FDR was not doing enough to redistribute the wealth
New Deal Programs • The “Bank Holiday”
• FDR closed all banks in the United States for a period of 4 days the day after he took the office of the Presidency.
• He did this to inspect the financial health of all banks • Eased the “run on the banks” • Confidence back into the banking system
• More $ in accounts than taking out • Established FDIC
New Deal Programs • In his first 100 days, FDR, with the help of his “brain trust,”
sent social program after social program to Congress for passage into law.
• These programs were referred to as FDR’s alphabet soup
social programs • because of all the acronyms!
Alphabet Soup
New Deal Programs
The First New Deal, 1933 - 1945
New Deal Programs • The Three R’s: Relief, Recovery, Reform
• aimed at combating the Great Depression • Relief: AAA, CCC, WPA, TVA, NRA, PWA • Recovery: NLRB, RFC • Reform: FDIC, FHA, SEC, SSA
• Which of these programs are still around today? (Can you name the six?)
Alphabet Soup
The Second New Deal The Second Hundred Days • After his first 100 days in office, stronger focus on Social
Reforms • Citizens & politicians began to complain that FDR was
“socializing” the United States too much and starting to stray from the values of hard work & initiative the country was built on. • New programs failed to bring about significant economic improvement
WPA
The Second New Deal • Court Packing (1937) - FDR’s BIGGEST COMPLAINT
• As many of his programs came under fire, they started being challenged @ Sup. Ct.
• When the Sup. Ct. refused to uphold the Constitutionality of some of his programs, he threatened the 9 member Supreme Court w/ adding more justices
• He wanted to ‘pack’ the U.S. Sup. Ct. w/ justices favoring his programs
NLRB & The Wagner Act • NLRB called The Wagner Act (1935)
• collective bargaining & closed shops • Led to a rise in unions and numbers of strikes • Outlawed spying on union activities & blacklisting (practice in which employers agreed not to hire union leaders)
• Led to sit-down strikes, which were so popular they were outlawed by the Sup. Ct.
Social Security Act (1935) • Social Security system
• Provide financial security (regular payments) to those who could not support themselves • Old-age pensions & survivors’ benefits
• early as 62 or full at 65 • Unemployment Insurance
• > 8 employees • Aid for dependent children, the blind, & the disabled
The Election of 1936 • FDR (D) vs. Alf Landon (R) KS Gov’nr • 523 electoral votes to 8 electoral votes
• every state except ME & VT • wins by a landslide • This victory showed support for FDR and all of his “New
Deal” programs
The Recession of 1937 • All of these social programs cost lots and lots of money
(Nothing comes free)
• led to a rise in national debt (spending more than it was bringing in)
• Our debt today (the debt clock) • Reduced consumer spending (ills of a consumer society)
Social Consequences of The New Deal • Minority groups lost jobs to whites • Women who worked were criticized • The “Depression Generation” and credit buying • Role of the First Lady in government • Legacy of the New Deal-restored hope • Role of Movies in society • Any effects of this legislation today?
2011 Federal Budget Expenditures
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1/30/13
14
The Roaring 20’s, The Great Depression, & The New Deal Presented by Mr. Anderson, M.Ed., J.D.
The Roaring 20’s • The Election of 1920
• wins by a landslide (60% of the popular vote vs. 34% for James Cox)
• Advocated social stability and big business (people trusted him)
• weary of sacrifice at home; healing was needed for normalcy
The “Return to Normalcy” • Laissez-faire government
• “The business of the American people is… business” – Calvin Coolidge)
The “Return to Normalcy” • Isolationism - The foreign policy that Republican presidents in
the 1920’s will follow • stay out of foreign affairs • avoid political and economic alliances
• America becomes isolationist for several reasons: • Because of the Treaty of Versailles • Because of the League of Nations, which called for disarmament
• to support big business
Political Scandal Under Harding • Harding’s Secretary of the Interior Albert B. Fall sold oil
drilling rights in Elk Hills, CA and Teapot Dome, Wyoming for $300,000
• Edward Doheny - owned oil fields in CA
• Frank Seaver - worked for Doheny
• Harry Sinclair - owned oil fields in WY
The Growth of the American Economy in the 1920’s • Recession after WWI
• economy slowed down • returning soldiers needed work (supply and demand) • COL doubled
• labor strikes for better working conditions and higher wages • Boston police strike
• puts Coolidge on the scene • led to riots, his successful handling will make him popular
The “Farm Problem” • No Roaring 20’s for the farmers
• after wartime demand ended, wheat and cotton prices plummeted
• During the good times, they had bought new machinery with loans
• incurred massive debt
Henry Ford and the Model T • Revolutionized the auto industry with the assembly line
(economies of scale) • Externalities -
• gas stations • motels • roads • part stores • tire companies
Installment Buying • To this point everything was done in cash! • Jumpstarts the Consumer economy and consumer culture we
have today! • with credit, demand grew • pushed up prices, but supply kept up • led to the construction of power plants • higher standard of living, more leisure time and… • chain stores
Those Who Did Not Benefit • Farmers
• Supply & demand during WWI & after WWI • Farmers should have cut supply after WWI
• Unskilled Labor & Migrant Workers • Remained poor • Hit the hardest of all
Warm-up #1: Review Notes • Briefly describe president Warren Harding’s stance on:
• foreign policy • treatment towards big business
• Briefly define installment buying.
• Explain the economic effect of the advent of installment buying.
The “Red Scare” • The “Red Scare” was in response to the Russian revolution
of 1917. • In desiring “normalcy,” American citizens sought to destroy
anybody or anything perceived to be “un-American.”
Nativism • The idea of returning America to its original state
• Return of the KKK • targeted Jews, African Americans, Immigrants
Nativism • Anti-immigration laws passed in the early 1920’s put quotas
or limits on the numbers of people that could come from certain countries (national origins act of 1924)
• no Asians • very few Pols, Italians, and Russians
These people represented competition in the labor market
Terrorist Plots • Anarchists target big names in society:
• Palmer (politician) • Rockefeller (business entrepreneur) • Oliver Wendell Holmes (Supreme Court Chief Justice)
• This is why Americans search for a return to the “America of old”
The Palmer Raids • As the Red Scare heightened, the government looked for
those who represented a “clear and present” danger to US national security
• Led by A. Mitchell Palmer, head of the Justice Department (attorney general)
• justice department is part of what branch?
A. Mitchell Palmer • created the FBI
• J. Edgar Hoover • Conducted two raids in 1919 and 1920
• arrests 6000 immigrants, aliens, labor leaders • tried to deport them all • 550 deported, 4000 released
Response to the Palmer Raids • Applause at first
• public outcry after the facts come out: • bogus search warrants (4th) • evidence falsified, right against self-incrimination (5th)
• practiced law after losing his nomination bid in the 1920 election
Social Issues of the 1920’s • Flappers & Vamps!
• wished to break with the past (mothers) • shorter hair, shorter skirts, more make-up • would go out alone, smoke/drink • clubs (Charleston) • The 19th Amendment (1920)
The Rise of American Culture • Mass Media: Billboards, radio, movies
• promoted the creation of a national culture
Radio • Affordable
• NBC(1925) & CBS (1929)
• George Burns, Groucho Marx, Bing Crosby, Jack Benny • FDR’s “fireside chats”
Sports • Football, Baseball & Boxing
• Lou Gehrig/Babe Ruth
Movies • The Jazz Singer
• Mickey Mouse
• For the first time, sound was put to the movements on the screen
Hero Worship • People longed for old-fashioned virtues
• people got fed up with immoral behavior • Charles Lindbergh, Amelia Earhart, Babe Ruth, Jack
Dempsey
Warm-up #2: Review Notes • Explain what the rise of films, radio broadcasting, and the
news media helped bring about in the United States at the beginning of the 1920’s?
The Scopes Monkey Trial • John Scopes – science teacher in TN • taught evolution in Biology class, which was banned because
it contradicted the teachings on the Bible • Legal Issue:
• the right to teach evolution in public schools
The Scopes Monkey Trial • Prosecution: State of Tennessee (William Jennings Bryan)
• Called themselves fundamentalists • believed in a literal interpretation of the Bible
• Defense: John Scopes (Clarence Darrow of the ACLU) • believed in Evolution and the theories of Charles Darwin • taught them purposefully
Tennessee v. John Scopes (1925)
The Scopes Monkey Trial • Scopes was found guilty of teaching evolution
• Fundamentalists lost serious momentum as a result of this decision
• Conviction was later overturned (did little to change interpretations)
Prohibition (18th Amendment) • Passed in 1919, this Amendment would lead to the rise of
organized crime • politicians in the 1920’s had to disclose if they were in favor
or a “wet” or “dry” society • Bootleggers, speakeasies popped up everywhere • In 1933, the 21st Amendment officially ended the prohibition
experiment
Prohibition • Enforced by the Volstead Act • Vetoed by Wilson (D) and overridden by each house of
Congress (R) by a 2/3 vote
Murder – Cal. P.C. §187
The Jazz Age • A truly American invention
• Louis Armstrong • Duke Ellington
• Started in the deep south and migrated north to Harlem during the Great Migration • blues • gospel
The Harlem Renaissance • The awakening of African American literary and musical
talent • James Weldon Johnson and Zora Neale Hurston, as well as Langston hughes embodied the Harlem Renaissance
Warm-up #3: Review Notes • List Amendments 18-27!!!!
The Election of 1928 • Al Smith (D):
• From NY where he was a four-time governor • pro-immigrant • Catholic
The Election of 1928 • Herbert Hoover (R):
• Sec. of Commerce under Harding and Coolidge • self-made millionaire • good times would get better • wins easily
Causes of the Stock Market Crash • It seemed that everybody was investing in the stock market • people bought stock on margin (get rich quick attitude) • made for a lot of rich Americans on paper.
Stock Market Principles • Stock- ownership of a company • point is to invest for the long-term • buy low and sell high • many factors that determine worth of stock
Stock Market Ascent and descent • The upward climb of the stock market benefitted the rich • created a “bubble” • in late October 1929, the Dow Jones Industrial Average
began to drop • people started to sell their stock
Bank Failures • After the crash, thousands of banks will have to close, not
being able to pay depositors back • No safety net (today federal insurance) • People lost confidence in their banks
The President’s Response • As the economy collapsed, people began to blame President
Hoover • “Hoovervilles” will spring up across the country, one effect of
wage cuts and unemployment
The President’s Response • As the economy continued to decline, Hoover believed the
gov’t. should let businesses voluntarily control themselves • no stimulus packages here! • Republican idea
The President’s Response • As a result of this inaction, the view of economics and the
government’s role in economics would change forever • the gov’t. is much more pro-active today in business affairs
Causes of the Great Depression • Overexpansion of Agriculture -
• WWI and increased demand • as war ended, farmers kept supply high • as demand decreased, farmers increased supply
Causes of the Great Depression • Overexpansion of industry -
• Industry produced more goods than most consumers could afford or want
• S>D as a result, reduced prices, reduced wages, stalled the economy
Causes of the Great Depression • Technological unemployment -
• Companies began to replace people with machines • work could be done quicker, more efficiently, and at a lower cost to the producer.
Causes of the Great Depression • Overexpansion of credit -
• credit was too easy in the 1920’s • people overextended themselves • as the economy turned south, loans couldn’t be repaid • FED tightened credit
• wrong move
Causes of the Great Depression • “Overspeculation” –
• bought stock w/ borrowed money & then pledged those stocks as collateral to buy more stocks
• Bought stock in companies with poor financial health
• Bought stock on optimism instead of real value
The Government’s Response • Voluntary steps by government and business
• Hoover advocated “confidence” • called big business leaders to white house
• promised to keep wages up • spent more on public buildings roads
The Government’s Response • Agricultural Marketing Act (June 1929)
• Federal Farm Board • 1st gov’t. attempt to stabilize crop prices • proved to be a failure • lost over $150,000,000.00
The Reconstruction Finance Corporation • Reflected theory of trickle down economics • Helped economy as a whole through loans • Government extended credit to banks who would then extend
credit to individuals in society
Warm-up #4: Review Notes • Who did American’s blame for the decline of the American
economy into the depression? • what were the shantytowns many American moved into called?
• “Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.” Charles Dickens David Copperfield
The Election of 1932 • Herbert Hoover (R) • FDR (D)
• People liked his optimism and his willingness to experiment with the economy
• Major Issues facing voters: The Depression and Prohibition
The “New Deal” • FDR won easily in 1932 by promising Americans a “New
Deal” • He was a capitalist but laissez-faire government was dead at this point
• Election marked a change in how Americans viewed the role and responsibilities of the national government
• “New Deal” was the most massive program of social legislation (laws) ever!
• Creation of several major federal agencies
The “Third American Revolution” • The Bonus Army Marchers – 20,000 jobless WWI Vets &
families set up camp in Washington D.C. • Wanted immediate payment of pension bonus (to be pd. in
‘45) • Pres. Hoover through Gen. Douglas MacArthur, used force to
drive them out of Washington D.C.
The “Third American Revolution” • The “Demagogues”
• FDR’s critics • They manipulated people with half-truths and scare tactics • Called for socialism and a change of government • Huey Long, Father Charles Coughlin, Dr. Francis Townsend
The “Third American Revolution” • The Progressives were another group of people who
criticized the government for not doing enough to fix the problems of society • FDR was not doing enough to redistribute the wealth
New Deal Programs • The “Bank Holiday”
• FDR closed all banks in the United States for a period of 4 days the day after he took the office of the Presidency.
• He did this to inspect the financial health of all banks • Eased the “run on the banks” • Confidence back into the banking system
• More $ in accounts than taking out • Established FDIC
New Deal Programs • In his first 100 days, FDR, with the help of his “brain trust,”
sent social program after social program to Congress for passage into law.
• These programs were referred to as FDR’s alphabet soup
social programs • because of all the acronyms!
Alphabet Soup
New Deal Programs
The First New Deal, 1933 - 1945
New Deal Programs • The Three R’s: Relief, Recovery, Reform
• aimed at combating the Great Depression • Relief: AAA, CCC, WPA, TVA, NRA, PWA • Recovery: NLRB, RFC • Reform: FDIC, FHA, SEC, SSA
• Which of these programs are still around today? (Can you name the six?)
Alphabet Soup
The Second New Deal The Second Hundred Days • After his first 100 days in office, stronger focus on Social
Reforms • Citizens & politicians began to complain that FDR was
“socializing” the United States too much and starting to stray from the values of hard work & initiative the country was built on. • New programs failed to bring about significant economic improvement
WPA
The Second New Deal • Court Packing (1937) - FDR’s BIGGEST COMPLAINT
• As many of his programs came under fire, they started being challenged @ Sup. Ct.
• When the Sup. Ct. refused to uphold the Constitutionality of some of his programs, he threatened the 9 member Supreme Court w/ adding more justices
• He wanted to ‘pack’ the U.S. Sup. Ct. w/ justices favoring his programs
NLRB & The Wagner Act • NLRB called The Wagner Act (1935)
• collective bargaining & closed shops • Led to a rise in unions and numbers of strikes • Outlawed spying on union activities & blacklisting (practice in which employers agreed not to hire union leaders)
• Led to sit-down strikes, which were so popular they were outlawed by the Sup. Ct.
Social Security Act (1935) • Social Security system
• Provide financial security (regular payments) to those who could not support themselves • Old-age pensions & survivors’ benefits
• early as 62 or full at 65 • Unemployment Insurance
• > 8 employees • Aid for dependent children, the blind, & the disabled
The Election of 1936 • FDR (D) vs. Alf Landon (R) KS Gov’nr • 523 electoral votes to 8 electoral votes
• every state except ME & VT • wins by a landslide • This victory showed support for FDR and all of his “New
Deal” programs
The Recession of 1937 • All of these social programs cost lots and lots of money
(Nothing comes free)
• led to a rise in national debt (spending more than it was bringing in)
• Our debt today (the debt clock) • Reduced consumer spending (ills of a consumer society)
Social Consequences of The New Deal • Minority groups lost jobs to whites • Women who worked were criticized • The “Depression Generation” and credit buying • Role of the First Lady in government • Legacy of the New Deal-restored hope • Role of Movies in society • Any effects of this legislation today?
2011 Federal Budget Expenditures
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3
4
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74
1/30/13
15
The Roaring 20’s, The Great Depression, & The New Deal Presented by Mr. Anderson, M.Ed., J.D.
The Roaring 20’s • The Election of 1920
• wins by a landslide (60% of the popular vote vs. 34% for James Cox)
• Advocated social stability and big business (people trusted him)
• weary of sacrifice at home; healing was needed for normalcy
The “Return to Normalcy” • Laissez-faire government
• “The business of the American people is… business” – Calvin Coolidge)
The “Return to Normalcy” • Isolationism - The foreign policy that Republican presidents in
the 1920’s will follow • stay out of foreign affairs • avoid political and economic alliances
• America becomes isolationist for several reasons: • Because of the Treaty of Versailles • Because of the League of Nations, which called for disarmament
• to support big business
Political Scandal Under Harding • Harding’s Secretary of the Interior Albert B. Fall sold oil
drilling rights in Elk Hills, CA and Teapot Dome, Wyoming for $300,000
• Edward Doheny - owned oil fields in CA
• Frank Seaver - worked for Doheny
• Harry Sinclair - owned oil fields in WY
The Growth of the American Economy in the 1920’s • Recession after WWI
• economy slowed down • returning soldiers needed work (supply and demand) • COL doubled
• labor strikes for better working conditions and higher wages • Boston police strike
• puts Coolidge on the scene • led to riots, his successful handling will make him popular
The “Farm Problem” • No Roaring 20’s for the farmers
• after wartime demand ended, wheat and cotton prices plummeted
• During the good times, they had bought new machinery with loans
• incurred massive debt
Henry Ford and the Model T • Revolutionized the auto industry with the assembly line
(economies of scale) • Externalities -
• gas stations • motels • roads • part stores • tire companies
Installment Buying • To this point everything was done in cash! • Jumpstarts the Consumer economy and consumer culture we
have today! • with credit, demand grew • pushed up prices, but supply kept up • led to the construction of power plants • higher standard of living, more leisure time and… • chain stores
Those Who Did Not Benefit • Farmers
• Supply & demand during WWI & after WWI • Farmers should have cut supply after WWI
• Unskilled Labor & Migrant Workers • Remained poor • Hit the hardest of all
Warm-up #1: Review Notes • Briefly describe president Warren Harding’s stance on:
• foreign policy • treatment towards big business
• Briefly define installment buying.
• Explain the economic effect of the advent of installment buying.
The “Red Scare” • The “Red Scare” was in response to the Russian revolution
of 1917. • In desiring “normalcy,” American citizens sought to destroy
anybody or anything perceived to be “un-American.”
Nativism • The idea of returning America to its original state
• Return of the KKK • targeted Jews, African Americans, Immigrants
Nativism • Anti-immigration laws passed in the early 1920’s put quotas
or limits on the numbers of people that could come from certain countries (national origins act of 1924)
• no Asians • very few Pols, Italians, and Russians
These people represented competition in the labor market
Terrorist Plots • Anarchists target big names in society:
• Palmer (politician) • Rockefeller (business entrepreneur) • Oliver Wendell Holmes (Supreme Court Chief Justice)
• This is why Americans search for a return to the “America of old”
The Palmer Raids • As the Red Scare heightened, the government looked for
those who represented a “clear and present” danger to US national security
• Led by A. Mitchell Palmer, head of the Justice Department (attorney general)
• justice department is part of what branch?
A. Mitchell Palmer • created the FBI
• J. Edgar Hoover • Conducted two raids in 1919 and 1920
• arrests 6000 immigrants, aliens, labor leaders • tried to deport them all • 550 deported, 4000 released
Response to the Palmer Raids • Applause at first
• public outcry after the facts come out: • bogus search warrants (4th) • evidence falsified, right against self-incrimination (5th)
• practiced law after losing his nomination bid in the 1920 election
Social Issues of the 1920’s • Flappers & Vamps!
• wished to break with the past (mothers) • shorter hair, shorter skirts, more make-up • would go out alone, smoke/drink • clubs (Charleston) • The 19th Amendment (1920)
The Rise of American Culture • Mass Media: Billboards, radio, movies
• promoted the creation of a national culture
Radio • Affordable
• NBC(1925) & CBS (1929)
• George Burns, Groucho Marx, Bing Crosby, Jack Benny • FDR’s “fireside chats”
Sports • Football, Baseball & Boxing
• Lou Gehrig/Babe Ruth
Movies • The Jazz Singer
• Mickey Mouse
• For the first time, sound was put to the movements on the screen
Hero Worship • People longed for old-fashioned virtues
• people got fed up with immoral behavior • Charles Lindbergh, Amelia Earhart, Babe Ruth, Jack
Dempsey
Warm-up #2: Review Notes • Explain what the rise of films, radio broadcasting, and the
news media helped bring about in the United States at the beginning of the 1920’s?
The Scopes Monkey Trial • John Scopes – science teacher in TN • taught evolution in Biology class, which was banned because
it contradicted the teachings on the Bible • Legal Issue:
• the right to teach evolution in public schools
The Scopes Monkey Trial • Prosecution: State of Tennessee (William Jennings Bryan)
• Called themselves fundamentalists • believed in a literal interpretation of the Bible
• Defense: John Scopes (Clarence Darrow of the ACLU) • believed in Evolution and the theories of Charles Darwin • taught them purposefully
Tennessee v. John Scopes (1925)
The Scopes Monkey Trial • Scopes was found guilty of teaching evolution
• Fundamentalists lost serious momentum as a result of this decision
• Conviction was later overturned (did little to change interpretations)
Prohibition (18th Amendment) • Passed in 1919, this Amendment would lead to the rise of
organized crime • politicians in the 1920’s had to disclose if they were in favor
or a “wet” or “dry” society • Bootleggers, speakeasies popped up everywhere • In 1933, the 21st Amendment officially ended the prohibition
experiment
Prohibition • Enforced by the Volstead Act • Vetoed by Wilson (D) and overridden by each house of
Congress (R) by a 2/3 vote
Murder – Cal. P.C. §187
The Jazz Age • A truly American invention
• Louis Armstrong • Duke Ellington
• Started in the deep south and migrated north to Harlem during the Great Migration • blues • gospel
The Harlem Renaissance • The awakening of African American literary and musical
talent • James Weldon Johnson and Zora Neale Hurston, as well as Langston hughes embodied the Harlem Renaissance
Warm-up #3: Review Notes • List Amendments 18-27!!!!
The Election of 1928 • Al Smith (D):
• From NY where he was a four-time governor • pro-immigrant • Catholic
The Election of 1928 • Herbert Hoover (R):
• Sec. of Commerce under Harding and Coolidge • self-made millionaire • good times would get better • wins easily
Causes of the Stock Market Crash • It seemed that everybody was investing in the stock market • people bought stock on margin (get rich quick attitude) • made for a lot of rich Americans on paper.
Stock Market Principles • Stock- ownership of a company • point is to invest for the long-term • buy low and sell high • many factors that determine worth of stock
Stock Market Ascent and descent • The upward climb of the stock market benefitted the rich • created a “bubble” • in late October 1929, the Dow Jones Industrial Average
began to drop • people started to sell their stock
Bank Failures • After the crash, thousands of banks will have to close, not
being able to pay depositors back • No safety net (today federal insurance) • People lost confidence in their banks
The President’s Response • As the economy collapsed, people began to blame President
Hoover • “Hoovervilles” will spring up across the country, one effect of
wage cuts and unemployment
The President’s Response • As the economy continued to decline, Hoover believed the
gov’t. should let businesses voluntarily control themselves • no stimulus packages here! • Republican idea
The President’s Response • As a result of this inaction, the view of economics and the
government’s role in economics would change forever • the gov’t. is much more pro-active today in business affairs
Causes of the Great Depression • Overexpansion of Agriculture -
• WWI and increased demand • as war ended, farmers kept supply high • as demand decreased, farmers increased supply
Causes of the Great Depression • Overexpansion of industry -
• Industry produced more goods than most consumers could afford or want
• S>D as a result, reduced prices, reduced wages, stalled the economy
Causes of the Great Depression • Technological unemployment -
• Companies began to replace people with machines • work could be done quicker, more efficiently, and at a lower cost to the producer.
Causes of the Great Depression • Overexpansion of credit -
• credit was too easy in the 1920’s • people overextended themselves • as the economy turned south, loans couldn’t be repaid • FED tightened credit
• wrong move
Causes of the Great Depression • “Overspeculation” –
• bought stock w/ borrowed money & then pledged those stocks as collateral to buy more stocks
• Bought stock in companies with poor financial health
• Bought stock on optimism instead of real value
The Government’s Response • Voluntary steps by government and business
• Hoover advocated “confidence” • called big business leaders to white house
• promised to keep wages up • spent more on public buildings roads
The Government’s Response • Agricultural Marketing Act (June 1929)
• Federal Farm Board • 1st gov’t. attempt to stabilize crop prices • proved to be a failure • lost over $150,000,000.00
The Reconstruction Finance Corporation • Reflected theory of trickle down economics • Helped economy as a whole through loans • Government extended credit to banks who would then extend
credit to individuals in society
Warm-up #4: Review Notes • Who did American’s blame for the decline of the American
economy into the depression? • what were the shantytowns many American moved into called?
• “Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.” Charles Dickens David Copperfield
The Election of 1932 • Herbert Hoover (R) • FDR (D)
• People liked his optimism and his willingness to experiment with the economy
• Major Issues facing voters: The Depression and Prohibition
The “New Deal” • FDR won easily in 1932 by promising Americans a “New
Deal” • He was a capitalist but laissez-faire government was dead at this point
• Election marked a change in how Americans viewed the role and responsibilities of the national government
• “New Deal” was the most massive program of social legislation (laws) ever!
• Creation of several major federal agencies
The “Third American Revolution” • The Bonus Army Marchers – 20,000 jobless WWI Vets &
families set up camp in Washington D.C. • Wanted immediate payment of pension bonus (to be pd. in
‘45) • Pres. Hoover through Gen. Douglas MacArthur, used force to
drive them out of Washington D.C.
The “Third American Revolution” • The “Demagogues”
• FDR’s critics • They manipulated people with half-truths and scare tactics • Called for socialism and a change of government • Huey Long, Father Charles Coughlin, Dr. Francis Townsend
The “Third American Revolution” • The Progressives were another group of people who
criticized the government for not doing enough to fix the problems of society • FDR was not doing enough to redistribute the wealth
New Deal Programs • The “Bank Holiday”
• FDR closed all banks in the United States for a period of 4 days the day after he took the office of the Presidency.
• He did this to inspect the financial health of all banks • Eased the “run on the banks” • Confidence back into the banking system
• More $ in accounts than taking out • Established FDIC
New Deal Programs • In his first 100 days, FDR, with the help of his “brain trust,”
sent social program after social program to Congress for passage into law.
• These programs were referred to as FDR’s alphabet soup
social programs • because of all the acronyms!
Alphabet Soup
New Deal Programs
The First New Deal, 1933 - 1945
New Deal Programs • The Three R’s: Relief, Recovery, Reform
• aimed at combating the Great Depression • Relief: AAA, CCC, WPA, TVA, NRA, PWA • Recovery: NLRB, RFC • Reform: FDIC, FHA, SEC, SSA
• Which of these programs are still around today? (Can you name the six?)
Alphabet Soup
The Second New Deal The Second Hundred Days • After his first 100 days in office, stronger focus on Social
Reforms • Citizens & politicians began to complain that FDR was
“socializing” the United States too much and starting to stray from the values of hard work & initiative the country was built on. • New programs failed to bring about significant economic improvement
WPA
The Second New Deal • Court Packing (1937) - FDR’s BIGGEST COMPLAINT
• As many of his programs came under fire, they started being challenged @ Sup. Ct.
• When the Sup. Ct. refused to uphold the Constitutionality of some of his programs, he threatened the 9 member Supreme Court w/ adding more justices
• He wanted to ‘pack’ the U.S. Sup. Ct. w/ justices favoring his programs
NLRB & The Wagner Act • NLRB called The Wagner Act (1935)
• collective bargaining & closed shops • Led to a rise in unions and numbers of strikes • Outlawed spying on union activities & blacklisting (practice in which employers agreed not to hire union leaders)
• Led to sit-down strikes, which were so popular they were outlawed by the Sup. Ct.
Social Security Act (1935) • Social Security system
• Provide financial security (regular payments) to those who could not support themselves • Old-age pensions & survivors’ benefits
• early as 62 or full at 65 • Unemployment Insurance
• > 8 employees • Aid for dependent children, the blind, & the disabled
The Election of 1936 • FDR (D) vs. Alf Landon (R) KS Gov’nr • 523 electoral votes to 8 electoral votes
• every state except ME & VT • wins by a landslide • This victory showed support for FDR and all of his “New
Deal” programs
The Recession of 1937 • All of these social programs cost lots and lots of money
(Nothing comes free)
• led to a rise in national debt (spending more than it was bringing in)
• Our debt today (the debt clock) • Reduced consumer spending (ills of a consumer society)
Social Consequences of The New Deal • Minority groups lost jobs to whites • Women who worked were criticized • The “Depression Generation” and credit buying • Role of the First Lady in government • Legacy of the New Deal-restored hope • Role of Movies in society • Any effects of this legislation today?
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